Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented. (b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. (c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party. (d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d). (e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement. (f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 3 contracts
Sources: Registration Rights Agreement (SecureWorks Corp), Registration Rights Agreement (SecureWorks Corp), Registration Rights Agreement (SecureWorks Corp)
Indemnification; Contribution. (a) The Company agrees to Amicus shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within (including the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partnersemployees, agents, employees representatives, officers and Affiliates directors of each Purchaser and its Affiliates) (each a “Purchaser Indemnitee”) from and against any and all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of of, directly or based upon indirectly, any untrue or alleged untrue statement of a material fact contained inin any Registration Statement or any other document filed in accordance with this Section 7, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading; provided, except however, that Amicus will not be liable in each any such case insofar as to the extent that any such statements or omissions Damages arise out of of, directly or are based upon (i) indirectly, any such untrue statement or alleged untrue statement or omission or alleged omission omission, made in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Amicus by such Holder or its counsel specifically and expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after inclusion in such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementeddocument.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to shall indemnify and hold harmless the CompanyAmicus, each Personand its respective directors, if anyofficers, who participates as an underwriter in any such offering and sale of Registrable Securities employees and each Person, if any, Person who controls the Company or such underwriter Amicus (within the meaning of Section 15 of the Securities Act or Section 20 of and the Exchange Act) from and against any and all losses, claims, damages, liabilities and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation expenses (including reasonable costs of investigation) arising out of of, directly or based upon indirectly, any untrue or alleged untrue statement of a material fact contained inin any Registration Statement or any other document filed in accordance with this Section 7, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any if such untrue statement or omission is was made in reliance on upon and in conformity with any information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify in the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess preparation of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationdocument.
(c) Any Each Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give prompt written notice to the indemnifying party (the “Indemnifying Party”) after the receipt by such indemnified party the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreementthe Transaction Documents; provided, provided however, that the failure to give such notification so notify the Indemnifying Party shall not affect relieve the obligations Indemnifying Party of any liability that it may have to the indemnifying party pursuant to this Section 12 except Indemnified Party hereunder unless, and only to the extent that, such failure results in the indemnifying party shall have been actually and materially prejudiced as a result Indemnifying Party’s forfeiture of such failuresubstantive rights or defenses. In case If notice of commencement of any such action shall be brought against any indemnified party and it shall notify is given to the indemnifying party of the commencement thereofIndemnifying Party as above provided, the indemnifying party Indemnifying Party shall be entitled to participate therein in and, to the extent that it shall so electmay wish, jointly with any other indemnifying party Indemnifying Party similarly notified, to assume the defense thereofof such action at its own expense, with counsel chosen by it and reasonably satisfactory to such indemnified party, Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and after notice from the indemnifying party to such indemnified party of its election so to assume participate in the defense thereof, but the indemnifying party shall not be liable to such indemnified party for any legal fees and expenses of other such counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof (other than reasonable costs of investigation, ) shall be paid by the Indemnified Party unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters Indemnified Party in an Underwritten Offering its reasonable judgment or (iii) the named parties to any such action (including any impleaded parties) have been advised by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (y) there may be one or more than one counsel for legal defenses available to it which are different from or additional to those available to the CompanyIndemnifying Party. In either of such cases, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is the Indemnifying Party shall not entitled to, or elects not to, have the right to assume the defense of a claim such action on behalf of such Indemnified Party. No Indemnifying Party shall be liable for any settlement entered into without its written consent (other than in the case where the Indemnifying Party is unconditionally released from liability and its rights are not adversely effected), which consent shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyunreasonably withheld.
(d) If the indemnification from the indemnifying party provided for in this Section 12 7.5 from the Indemnifying Party pursuant to applicable law is unavailable to an indemnified party Indemnified Party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault faults of such indemnifying party Indemnifying Party and indemnified party Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledgeKnowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(cSections 7.5(a), (b) and (c), any legal or other fees and fees, charges or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7.5(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of an intentional or fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Person.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 3 contracts
Sources: Note and Warrant Purchase Agreement, Note and Warrant Purchase Agreement (Amicus Therapeutics Inc), Note and Warrant Purchase Agreement (Amicus Therapeutics Inc)
Indemnification; Contribution. (a) The Company agrees to Issuer shall indemnify and hold harmless each Holder in any offering or sale Holder, each of its directors, officers (and partners and managers, as applicable), each underwriter of Registrable Securities pursuant and Indemnified Affiliates of each of them, against any losses, expenses, claims, damages or liabilities (or actions in respect thereof), joint or several, to this Agreementwhich such Holder, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of Indemnified Affiliate may become subject under the Securities Act or Section 20 otherwise, including reasonable costs of the Exchange Act investigation and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities reasonable attorney’s fees and expenses (including reasonable attorneys’ fees each, a “Liability” and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “LossesLiabilities”) incurred by and will reimburse such party pursuant to Holders, underwriters and Indemnified Affiliates for any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, reasonable legal or any omission other expenses incurred in connection with investigating, defending or alleged omission of a material fact required to be stated insettling any such Liability, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as to the extent such statements Liabilities directly or omissions indirectly arise out of or are based upon (i) any such untrue statement or alleged untrue statement of any material fact contained in any registration statement under which such Registrable Securities were registered under the Securities Act or omission any Prospectus contained therein, or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder any amendment or its counsel expressly for use thereinsupplement thereof, or any Disclosure Package, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (therein, in the case of a any such Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made, not misleading or (iii) any violation or alleged violation by the Issuer of any rule or regulation promulgated under the Securities Act or any state securities laws, and shall reimburse each such Holder, underwriter and Indemnified Affiliate for any reasonable legal or any other expenses incurred in connection with investigating, defending or settling any such Liability; provided, that the Issuer shall not be liable in any such case to the extent that any Liability arises out of or is based on any untrue statement or omission based upon and in conformity with written information furnished to the Issuer by an instrument duly executed by such Holder or underwriter specifically for use therein.
(b) Each Holder shall, if Registrable Securities held by or issuable to such Holder are included in the securities as to which such registration is being effected, indemnify and hold harmless the Issuer, each of its directors, officers (and partners and managers, as applicable), each underwriter, if any, of the Issuer’s securities covered by such a registration statement and each other such Holder and Indemnified Affiliates of each of them against all Liabilities arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement or any Prospectus contained therein, or any amendment or supplement thereof, or any Disclosure Package or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein, in the case of any such Prospectus, in light of the circumstances under which they were made, not misleading, and will reimburse the Issuer, such Holders, underwriters and Indemnified Affiliates for any reasonable legal or any other expenses incurred in connection with investigating, defending or settling any such Liability, in each case to the extent, but only to the extent extent, that any such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement or any Prospectus contained therein, or any amendment or supplement thereof, or any Disclosure Package, in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Issuer by an instrument duly executed by such Holder or its counsel specifically for use therein; provided, however, that no Holder the total amount for which any Holder, its officers, directors and partners, and any Person controlling such Holder, shall be required to indemnify the Company or any other indemnified party liable under this Section 12(b3.8(b) with respect to shall not in any amount in excess of event exceed the amount of the gross proceeds, after deducting any underwriting discounts and commissions, aggregate net proceeds received by such Holder upon from the sale of the Registrable Securities giving rise to sold by such indemnification obligationHolder in such registration.
(c) Any Person Each party entitled to indemnification hereunder agrees to under this Section 3.8 (the “Indemnified Party”) shall give prompt written notice to the indemnifying party required to provide indemnification (the “Indemnifying Party”) promptly after the receipt by such indemnified party of any Indemnified Party has received written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for as to which such indemnified party indemnity may claim indemnification or contribution pursuant to this Agreementbe sought; provided, provided that the failure of any Indemnified Party to give such notification notice as provided herein shall not affect relieve the Indemnifying Party of its obligations of the indemnifying party pursuant to this Section 12 hereunder, except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of that such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, failure resulted in actual detriment to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyIndemnifying Party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 3.8 is held by a court of competent jurisdiction to be unavailable to an indemnified party hereunder in Indemnified Party with respect of to any LossesLiability referred to herein, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party thereunder, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses Liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party, on the one hand, and indemnified party of the Indemnified Party, on the other hand, in connection with the actions statements or omissions which resulted in such Losses, Liability as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess . The relevant fault of the amount of Indemnifying Party and the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such indemnifying party by the Indemnifying Party or indemnified party, by the Indemnified Party and the parties’ relative intent, knowledge, access to information concerning the matter with respect to which the claim was asserted and opportunity to correct or prevent such actionstatement or omission. Notwithstanding the foregoing, the amount any Holder shall be obligated to contribute pursuant to this Section 3.8(d) shall be limited to an amount equal to the net proceeds to such Holder of the Registrable Securities sold pursuant to the registration statement which gives rise to such obligation to contribute (less the aggregate amount of any damages which the Holder has otherwise been required to pay in respect of such Liability or any substantially similar Liability arising from the sale of such Registrable Securities). The amount paid parties agree that it would be neither just nor equitable if contribution pursuant to this Section 3.8(d) were determined by pro rata allocation or payable by a party as a result any other method of allocation that does not take into account the Losses equitable considerations referred to above shall be deemed to include, subject to in the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceedingimmediately preceding sentences. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of indemnification and contribution provided by this Section 12 3.8 shall be in addition a continuing right to any liability which any indemnifying party may have to any indemnified party indemnification and shall survive the registration and sale of any securities by any Person entitled to indemnification and contribution hereunder and the expiration or termination of this Agreement.
(f) The Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution required by this Section 12 contained in the underwriting agreement entered into in connection with an underwritten public offering are in conflict with the foregoing provisions, the provisions in such underwriting agreement shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurredcontrol.
Appears in 3 contracts
Sources: Investor Rights Agreement, Investor Rights Agreement (Ares Management Corp), Investor Rights Agreement (Ares Management Lp)
Indemnification; Contribution. (a) The Company agrees to Amicus shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within (including the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partnersemployees, agents, employees representatives, officers and Affiliates directors of each Purchaser and its Affiliates) (each a “Purchaser Indemnitee”) from and against any and all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular prepared by Amicus in connection with the registration and/or offering of the Registrable Securities (as amended or supplemented if Amicus shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements the same are caused by or omissions arise out of or are based upon (i) contained in any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel specifically and expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after inclusion in such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementeddocument.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to shall indemnify and hold harmless the CompanyAmicus, each Personand its respective directors, if anyofficers, who participates as an underwriter in any such offering and sale of Registrable Securities employees and each Person, if any, Person who controls the Company or such underwriter Amicus (within the meaning of Section 15 of the Securities Act or Section 20 of and the Exchange Act) from and against any and all losses, claims, damages, liabilities and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation expenses (including reasonable costs of investigation) arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular prepared by Amicus in connection with the registration and/or offering of the Registrable Securities (as amended or supplemented if Amicus shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any if such untrue statement or omission is was made in reliance on upon and in conformity with any information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel specifically and expressly for use thereinin the preparation of such document; provided, however, that in no Holder event shall be required to indemnify the Company or any other indemnified party indemnity under this Section 12(b6.5(b) with respect to any be greater in amount in excess of than the aggregate dollar amount of the gross proceeds, after deducting any underwriting discounts and commissions, proceeds received by such Holder all of the Purchasers upon the sale of the such Registrable Securities giving rise to such indemnification obligationSecurities.
(c) Any Each Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give prompt written notice to the indemnifying party (the “Indemnifying Party”) after the receipt by such indemnified party the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreementthe Transaction Documents; provided, provided however, that the failure to give such notification so notify the Indemnifying Party shall not affect relieve the obligations Indemnifying Party of any liability that it may have to the indemnifying party pursuant to this Section 12 except Indemnified Party hereunder unless, and only to the extent that, such failure results in the indemnifying party shall have been actually and materially prejudiced as a result Indemnifying Party’s forfeiture of such failuresubstantive rights or defenses. In case If notice of commencement of any such action shall be brought against any indemnified party and it shall notify is given to the indemnifying party of the commencement thereofIndemnifying Party as above provided, the indemnifying party Indemnifying Party shall be entitled to participate therein in and, to the extent that it shall so electmay wish, jointly with any other indemnifying party Indemnifying Party similarly notified, to assume the defense thereofof such action at its own expense, with counsel chosen by it and reasonably satisfactory to such indemnified party, Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and after notice from the indemnifying party to such indemnified party of its election so to assume participate in the defense thereof, but the indemnifying party shall not be liable to such indemnified party for any legal fees and expenses of other such counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof (other than reasonable costs of investigation, ) shall be paid by the Indemnified Party unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters Indemnified Party in an Underwritten Offering its reasonable judgment or (iii) the named parties to any such action (including any impleaded parties) have been advised by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (y) there may be one or more than one counsel for legal defenses available to it which are different from or additional to those available to the CompanyIndemnifying Party. In either of such cases, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is the Indemnifying Party shall not entitled to, or elects not to, have the right to assume the defense of a claim such action on behalf of such Indemnified Party. No Indemnifying Party shall be liable for any settlement entered into without its written consent (other than in the case where the Indemnifying Party is unconditionally released from liability and its rights are not adversely effected), which consent shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyunreasonably withheld.
(d) If the indemnification from the indemnifying party provided for in this Section 12 6.5 from the Indemnifying Party pursuant to applicable law is unavailable to an indemnified party Indemnified Party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault faults of such indemnifying party Indemnifying Party and indemnified party Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledgeKnowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(cSections 6.5(a), (b) and (c), any legal or other fees and fees, charges or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6.5(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of an intentional or fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Person.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 3 contracts
Sources: Securities Purchase Agreement (Amicus Therapeutics, Inc.), Securities Purchase Agreement (Amicus Therapeutics, Inc.), Securities Purchase Agreement (Amicus Therapeutics, Inc.)
Indemnification; Contribution. (a) The If any Registrable Securities are included in a registration statement under this Agreement:
6.1. To the extent permitted by applicable law, the Company agrees to shall indemnify and hold harmless each Holder Selling Holder, each underwriter or Agent in any offering underwritten or sale of Registrable Securities pursuant to this Agreementagented offering, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder Selling Holder, underwriter or such underwriter Agent within the meaning of Section 15 of the Securities Act or Section 20 Act, and each officer, director, partner and employee, of the Exchange Act such Selling Holder, underwriter, Agent and their respective directorssuch controlling Persons, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses (joint or several), including reasonable attorneys’ fees and expensesdisbursements and expenses of investigation, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising investigation, or to which any of the foregoing Persons may become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any of the following statements, omissions or violations (collectively, a “Violation”):
(i) any untrue statement or alleged untrue statement of a material fact contained inin such registration statement or prospectus, including any preliminary prospectus or final prospectus or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer informationfree writing prospectus” filed or required to be filed pursuant to as such term is defined in Rule 433(d) 433 under the Securities Act, or any amendments or supplements thereto; or
(ii) the omission or alleged omission to state in any such registration statement or prospectus, including any preliminary prospectus or final prospectus or “issuer free writing prospectus”, or any amendments or supplements thereto, a material fact required or allegedly required to be stated therein, or necessary or allegedly necessary to make the statements therein (therein, in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) under which they were made, not misleading; provided, except however, that the indemnification required by this Section 6.1 shall not apply to amounts paid in each settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld, conditioned or delayed), nor shall the Company be liable in any such case insofar as for any such statements loss, claim, damage, liability, or omissions arise expense solely to the extent that it arises out of or are is based upon (ix) any such untrue statement or alleged untrue statement or omission or alleged omission made a Violation which occurs in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly the indemnified party for use thereinin connection with such registration, or (iiy) the use failure of any Prospectus, Free Writing Prospectus person entitled to indemnification hereunder to deliver or “issuer information” after such time as the obligation of the Company make available to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale purchaser of Registrable Securities (to the extent required by law), a copy of any registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto (if the same was required by applicable law to be delivered or made available), provided, that the Company shall have timely delivered to the applicable Selling Holder such registration statement, including such preliminary prospectus or final prospectus contained therein and any amendments or supplements thereto. The Company shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers, directors, agents and employees and each Person, if any, person who controls the Company or such underwriter persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Selling Holders.
6.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Company, each of its directors, each of its officers who shall have signed the registration statement, each Person who controls the Company within the meaning of the Securities Act, each underwriter or Agent in any underwritten or agented offering and each Person who controls such underwriter or Agent within the meaning of the Securities Act, and their respective directorseach officer, trusteesdirector, officers, partners, agents, employees partner and Affiliatesemployee of such underwriter or Agent or such controlling Person, against any and all Losses losses, claims, damages, liabilities and expenses (joint and several), including attorneys’ fees and disbursements and expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained ininvestigation, or to which any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or necessary to make the statements therein (other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any Violation, in each case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only solely to the extent that any such untrue statement or omission is made Violation occurs in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Selling Holder or its counsel specifically Representatives or controlling persons expressly for use thereinin connection with such registration; provided, however, that (x) the indemnification required by this Section 6.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if settlement is effected without the consent of the relevant Selling Holder of Registrable Securities, which consent shall not be unreasonably withheld, conditioned or delayed, and (y) in no Holder event shall be required to indemnify the Company or amount of any other indemnity under this Section 6.2 exceed the gross proceeds from the applicable offering received by such Selling Holder.
6.3. Promptly after receipt by an indemnified party under this Section 12(b) with respect to any amount in excess 6 of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim indemnification or contribution pursuant under this Section 6, such indemnified party shall deliver to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant a written notice of the commencement thereof and the indemnifying party shall have the right to this Section 12 except participate in, and, to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electdesires, jointly with any other indemnifying party similarly notifiedgiven notice, to assume the defense thereof, thereof with counsel reasonably satisfactory to such indemnified partythe parties; provided, and after notice from the indemnifying party to such however, that an indemnified party of its election so shall have the right to assume retain separate counsel in any such action, claim or proceeding and to participate in the defense thereof, provided, that the indemnified party shall be responsible for its own fees and disbursements and expenses unless representation of such indemnified party by the counsel retained by the indemnifying party shall not would be liable inappropriate due to such indemnified party for any legal expenses of other counsel actual or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist potential differing interests between the indemnifying party and such indemnified party and any other of party represented by such indemnified parties with respect to counsel in such claim, proceeding (in which event case the indemnifying party shall not be liable for the pay such fees and disbursements and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are the indemnified parties, selected by party and shall not have the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory right to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of such action, claim or proceeding on behalf of such indemnified party). The failure to deliver written notice to the indemnifying party within a claim reasonable time following the commencement of any such action, if and only to the extent prejudicial to the indemnifying party, shall not be obligated relieve such indemnifying party of any liability to pay the indemnified party under this Section 6 to the extent of such prejudice. Notwithstanding the foregoing, the indemnified party will have the absolute right to conduct and control, through counsel of its choosing (with the fees and disbursements and expenses to be paid by the indemnifying party) the defense, compromise and settlement of more than one counsel for all parties indemnified by any such action, claim or proceeding if the indemnifying party with respect does not elect to such claimassume control of the defense within thirty (30) days after receiving notice thereof; provided, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event that the indemnifying party shall be obligated permitted to pay participate in the fees defense thereof with its own counsel and expenses of such additional counsel, provided that the at its own expense. No indemnifying party shall be liable to an indemnified party for any settlement of any action, proceeding or claim without the written consent of the indemnifying party, which consent shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified partiesunreasonably withheld, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering conditioned or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsdelayed. No indemnifying party, in defense party shall consent to any settlement of any such action, suit, proceeding or investigation, shall, except with claim without the written consent of each indemnified the indemnifying party, which consent to the entry of any judgment shall not be unreasonably withheld, conditioned or entry into any settlement which delayed, that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a an unconditional release from all liability in respect to of such action, suit, proceeding or investigation to the extent such liability is covered claim or that requires an admission of wrongdoing by the indemnity obligations set forth in this Section 12. No any indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) 6.4. If the indemnification required by this Section 6 from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losseslosses, then the claims, damages, liabilities or expenses referred to in this Section 6:
(i) The indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which that resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, Violation has been made committed by, or relates to information supplied by, such indemnifying party or indemnified partyparties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionViolation. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c)6.1 and Section 6.2, any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding.
(ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6.4 were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in Section 6.4(i). No Person that is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d).
6.5. If indemnification is available under this Section 126, the indemnifying parties shall indemnify each indemnified party to the full extent provided in this Section 12(a) or 12(b), as the case may be, 6 without regard to the relative fault of such indemnifying parties party or indemnified party or any other equitable consideration provided for referred to in Section 6.4.
6.6. The obligations of the Company and the Selling Holders of Registrable Securities under this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and 6 shall survive the termination completion of any offering of Registrable Securities pursuant to a registration statement under this Agreement.
(f) The indemnification , and contribution required by this Section 12 shall be made by periodic payments otherwise until the expiration of the amount thereof during the course applicable statute of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurredlimitations.
Appears in 2 contracts
Sources: Registration Rights Agreement (Entercom Communications Corp), Stock Purchase Agreement (Entercom Communications Corp)
Indemnification; Contribution. (a) The Company agrees Dealer Manager will indemnify, defend (subject to indemnify Section 4 of the Dealer Manager Agreement) and hold harmless each Holder the Wholesaler, its affiliates and their respective officers, directors, shareholders, members, partners, other equity-holders and control persons (collectively, the “Other Indemnified Parties”), from and against any losses, claims (including the reasonable costs of investigation and legal fees), damages or liabilities (or actions in any offering respect thereof), to which the Wholesaler, its affiliates or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of their respective Other Indemnified Parties may become subject under the Securities Act or Section 20 of the Exchange Act and their respective directorsAct, trusteesor otherwise, officers, partners, agents, employees and Affiliates against all insofar as such losses, claims, damages, damages or liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid or actions in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedrespect thereof) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising arise out of or are based upon upon: (i) any inaccuracy in or breach of a representation or warranty contained herein by the Dealer Manager, any breach of a covenant or agreement contained herein of the Dealer Manager, or any failure by the Dealer Manager to comply with state or federal securities law applicable to the Offering; (ii) any untrue statement or alleged untrue statement of a material fact contained inin the information relating to the Dealer Manager that appears in the Dealer Manager Sections of the Prospectus or any amendment thereof, or any arise out of or are based upon the omission or alleged omission of to state in the Dealer Manager Sections a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (therein, in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) under which they were made, not misleading; and (iii) any unauthorized use of sales materials or use of unauthorized verbal representations concerning the Offered Shares by the Dealer Manager. The Dealer Manager will reimburse the Wholesaler and its Other Indemnified Parties for any legal or other expenses reasonably incurred by such Wholesaler, except its affiliates and their respective Other Indemnified Parties in each case connection with investigating or defending such loss, claim, damage, liability or action.
(b) The Wholesaler will indemnify, defend and hold harmless the Dealer Manager, the Company and their respective Other Indemnified Parties, from and against any losses, claims (including the reasonable costs of investigation and legal fees), damages or liabilities (or actions in respect thereof), to which the Dealer Manager, the Company and any of their respective Other Indemnified Parties may become subject under the Securities Act or the Exchange Act, or otherwise, insofar as such statements losses, claims (including the reasonable costs of investigation and legal fees), damages or omissions liabilities (or actions in respect thereof) arise out of or are based upon upon: (i) any such untrue statement inaccuracy in or alleged untrue statement breach of a representation or omission warranty contained herein by the Wholesaler, any breach of a covenant or alleged omission made in reliance on and in conformity agreement contained herein of the Wholesaler, or any failure by the Wholesaler to comply with information with respect to such Holder furnished in writing state or federal securities laws applicable to the Company by such Holder or its counsel expressly for use therein, Offering; and (ii) the any unauthorized use of any Prospectus, Free Writing Prospectus sales materials or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as unauthorized verbal representations concerning the Company has advised Shares by the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationWholesaler.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such an indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may will, if a claim indemnification or contribution pursuant in respect thereof is to this Agreement, provided that failure to give such notification shall not affect the obligations of be made against the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall party, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under this Section 8 unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in this Agreement. The indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with appoint counsel reasonably satisfactory to such indemnified party, and after notice from of the indemnifying party party’s choice at the indemnifying party’s expense to such represent the indemnified party of its election so to assume the defense thereof, in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be subject to approval by the indemnified party, not to be unreasonably withheld or delayed. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ and select separate counsel (including local counsel), subject to approval by the indemnifying party not to be unreasonably withheld or delayed, and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) more than one the use of counsel for all Holders holding Registrable Securities who are indemnified parties, selected chosen by the Holders holding indemnifying party to represent the indemnified party would present such counsel with a majority conflict of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company)interest, (ii) more than one counsel for the underwriters in an Underwritten Offering actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one have employed counsel for the underwriters in an Underwritten Offering indemnified party (subject to approval by the indemnified party not to be unreasonably withheld or delayed) to represent the indemnified party within a reasonable time after notice of the institution of such action or (Civ) more than one the indemnifying party shall authorize the indemnified party to employ separate counsel for at the Company, in each case in connection with any one action or separate but similar or related actions. No expense of the indemnifying party, in defense of any such action, suit, proceeding . An indemnifying party may settle or investigation, shall, except with the consent of each indemnified party, compromise or consent to the entry of any judgment with respect to any pending or entry into any settlement threatened claim, action, suit or proceeding in respect of which does indemnification or contribution may be sought hereunder but may not include as do so without the prior written consent of the indemnified parties, unless such settlement, compromise or consent includes an unconditional term thereof the giving by the claimant or plaintiff to such release of each indemnified party of a release from all liability in respect to arising out of such claim, action, suit, proceeding suit or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyproceeding.
(d) If the right to indemnification from the indemnifying party provided for in this Section 12 8 would by its terms be available to a person hereunder, but is held to be unavailable to an indemnified party hereunder in respect by a court of competent jurisdiction for any Lossesreason, then the each indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the aggregate amount paid or payable by such indemnified party as a result of such Losses and expenses in respect thereof, as incurred, in such proportion as is appropriate to reflect the relative fault of the indemnifying party Dealer Manager and indemnified party the Wholesaler, as applicable, in connection with the actions statements, omissions or other circumstances which resulted in such LossesLosses or expenses, as well as any other relevant equitable considerations; provided. The relative fault of the Dealer Manager and the Wholesaler, howeveras applicable, shall be determined by reference to, among other things, the parties’ relative intent, knowledge, and access to information. It is understood that no Holder it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 8(d). Notwithstanding the provisions of this Section 8(d), the Dealer Manager shall not be required to contribute any amount in excess of the amount total price of the gross proceeds, after deducting any underwriting discounts and commissions, received Offering Shares sold by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceedingit. No Person person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions For purposes of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments 8(d), each Other Indemnified Party affiliate of the amount thereof during Dealer Manager shall have the course same rights to contribution as the Dealer Manager and each Other Indemnified Party of any action, suit, proceeding or investigation, the Wholesaler shall have the same rights to contribution as and when invoices are received or Losses are incurredthe Wholesaler.
Appears in 2 contracts
Sources: Equity Purchase Agreement (ARC Properties Operating Partnership, L.P.), Equity Purchase Agreement (RCS Capital Corp)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b13(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 13 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 1213. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 13 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c13(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d13(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d13(d). If indemnification is available under this Section 1213, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a13(a) or 12(bSection 13(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d13(d).
(e) The provisions of this Section 12 13 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 13 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Registration Rights Agreement (SkyWater Technology, Inc), Registration Rights Agreement (SkyWater Technology, Inc)
Indemnification; Contribution. If any Registrable Securities are included in a registration statement under this Agreement:
(ai) The To the extent permitted by applicable law, the Company agrees to shall indemnify and hold harmless each Holder Holder, and the partners, members, officers, directors, employees, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in any offering or sale of Registrable the Securities pursuant to this Agreement, Act) for each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, Holder; and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act, against any and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (joint or several), including reasonable attorneys’ attorney’s fees and expenses, as incurred, disbursements and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) reasonable expenses of investigation (collectively, “Losses”) ), incurred by such party Person pursuant to any actual or threatened action, suit, proceeding or investigation arising investigation, or to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, but only insofar as such Losses arise out of or are based upon any of the following statements or omissions (collectively, a “Violation”):
(1) any untrue statement or alleged untrue statement of a material fact contained inin the registration statement, including any preliminary Prospectus or final Prospectus contained therein, or any amendments or supplements thereto; or
(2) the omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Acttherein, or necessary to make the statements therein (therein, in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) under which they were made, not misleading; provided, except however, that the indemnification required by this Section 2(f)(i) shall not apply to amounts paid in each settlement of any such Loss if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case insofar as for any such statements or omissions arise Loss to the extent that it arises out of or are is based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made a Violation which occurs in reliance on upon and in conformity with information with respect to such Holder furnished in writing to the Company by such or on behalf of a Holder or its counsel any underwriter expressly for use thereinin connection with such registration; and provided, further, that any indemnification required by this Section 2(f)(i) shall not apply to the extent that any such Loss is based on or arises out of an untrue statement or alleged untrue statement of a material fact, or an omission or alleged omission to state a material fact, included in or omitted from any preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement, or such omission or alleged omission, and a copy of the final prospectus has not been sent or given by the Holder or any underwriter to the Person alleging damage at or prior to the confirmation of sale to such Person; and provided, further, that this indemnity shall not apply to the extent that any such Loss is based on an offer or Transfer of Registrable Securities during any period which the Company has notified the Holder that such offers and Transfers must cease under the Agreement, including under Section 2(b), Section 2(c)(ii) or Section 2(c)(v) .
(ii) To the use of any Prospectusextent permitted by applicable law, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to jointly) shall indemnify and hold harmless the Company, each Personof the directors of the Company, if anyeach of the officers of the Company who shall have signed the Resale Registration Statement, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directorseach officer, trusteesdirector, officerspartner, partners, agents, employees and Affiliatesemployee of such controlling Person, against any and all Losses incurred by such party Person pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained ininvestigation, or to which any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus other federal or “issuer information,” in the light of the circumstances then existing) not misleadingstate laws, but only insofar as such Losses arise out of or are based upon any Violation, in each case to the extent that any such untrue statement Violation arises out of or omission is made in reliance on and in conformity with based upon information with respect to such Holder furnished in writing to the Company by such or on behalf of a Holder or its counsel specifically expressly for use thereinin connection with such registration, or upon the Holder’s failure to properly and timely deliver an “official” Prospectus, or upon the Holder’s use of a written or oral prospectus other than the “official” Prospectus; provided, however, that any indemnification required by this Section 2(f)(ii) shall not apply to amounts paid in settlement of any such Loss if such settlement is effected without the consent of the Holders (which consent shall not be unreasonably withheld) and in no Holder event shall be required to indemnify the Company or amount of any other indemnity obligation under this Section 2(f)(ii) exceed the gross proceeds from the applicable offering received by the Holders.
(iii) Promptly after receipt by an indemnified party under this Section 12(b2(f) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim indemnification or contribution pursuant under this Section 2(f), such indemnified party shall deliver to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant a written notice thereof and the indemnifying party shall have the right to this Section 12 except participate in, and, to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electdesires, jointly with any other indemnifying party similarly notifiednoticed, to assume the defense thereof, thereof with counsel reasonably satisfactory to the indemnified party; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses (in each case, to the extent reasonable) to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 2(f) to the extent, but only to the extent, of such prejudice but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 2(f). Any such indemnified party shall have the right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to promptly assume the defense of such action, claim or proceeding or (iii) the named parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and after notice such indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it that are different from or in addition to those available to the indemnifying party to and that the assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party could not faithfully represent the indemnified party (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of its election so to assume the defense thereofindemnifying party, the indemnifying party shall not be liable have the right to assume the defense of such indemnified party for any legal expenses action, claim or proceeding on behalf of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or proceeding or separate but substantially similar or related actions, claims or proceedings in the defense thereof other same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than reasonable costs one separate firm of investigationattorneys (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of any such indemnified party, based on the opinion of counsel, party a conflict of interest is likely to may exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claimaction, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering claim or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claimproceeding, in which event the indemnifying party shall be obligated to pay the reasonable fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Companyor counsels), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(div) If the indemnification required by this Section 2(f) from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then Losses referred to in this Section 2(f) :
(1) the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which that resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, Violation has been made committed by, or relates to information supplied by, such indemnifying party or indemnified partyparties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionViolation. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c2(f)(i), 2(f)(ii) and 2(f)(iii), any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding;
(2) the parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 2(f)(iv) were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in Section 2(f)(iv)(1). No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f11(e) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. .
(v) The parties agree that it would not be just obligations of the Company and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available Holders under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a2(f) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination completion of any offering of Registrable Securities pursuant to the registration statement under this Agreement, and otherwise.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Registration Rights Agreement (Akorn Inc), Registration Rights Agreement (Akorn Inc)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority Majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Registration Rights Agreement (SecureWorks Corp), Registration Rights Agreement (SecureWorks Corp)
Indemnification; Contribution. (a) The In connection with any registration of Registrable Securities pursuant to Section 3.01, Section 3.02 or Section 3.03 hereof, the Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant harmless, to this Agreementthe fullest extent permitted by Law, each PersonTengelmann, if anyits Affiliates, who participates as an underwriter in any such offering directors, officers and sale of Registrable Securities, stockholders and each Person, if any, Person who controls such Holder or such underwriter Tengelmann within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Indemnified Persons”) from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities liabilities, judgments, actions and expenses (including reasonable attorneys’ fees and expensesfees) joint or several, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin any part of any Registration Statement or any preliminary or final prospectus used in connection with the Registrable Securities or any Issuer FWP, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectusprospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading; provided that the Company will not be required to indemnify any Indemnified Person for any losses, except in each case insofar as such statements claims, damages, liabilities, judgments, actions or omissions arise out of or are based upon (i) expenses resulting from any such untrue statement or alleged omission if such untrue statement or omission or alleged omission was made in reliance on and in conformity with information with respect to such Holder any Indemnified Person furnished in writing to the Company in writing by such Holder or its counsel Tengelmann expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this AgreementStatement, each Holder holding Registrable Securities to be covered thereby agreespreliminary or final prospectus, severally and not jointly with any other Holdersor Issuer FWP, Tengelmann agrees to indemnify and hold harmless the Company, each Personits Directors, if any, its officers who participates as an underwriter in any sign such offering and sale of Registrable Securities Registration Statement and each Person, if any, who controls the Company or such underwriter (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant ) to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required the same extent as the foregoing indemnity from the Company to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleadingTengelmann, but only with respect to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder any Indemnified Person furnished in writing to the Company in writing by such Holder or its counsel specifically Tengelmann expressly for use therein; providedin such Registration Statement, howeverpreliminary or final prospectus, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationIssuer FWP.
(c) Any In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party in respect of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party indemnity may claim indemnification or contribution be sought pursuant to this AgreementSection 3.08(a) or (b), such Person (hereinafter called the “indemnified party”) will (i) promptly notify the Person against whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing; provided that the failure to give such notification notice shall not affect the obligations of relieve the indemnifying party of its obligations pursuant to this Section 12 Agreement except to the extent such indemnifying party has been prejudiced in any material respect by such failure; (ii) permit the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereofof such claim, action or proceeding with counsel reasonably satisfactory to such the indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume represent the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other (iii) pay the fees and disbursements of such indemnified parties with respect counsel related to such claim, in which event action or proceeding. In any such claim, action or proceeding, any indemnified party will have the indemnifying party shall not be liable for right to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such indemnified party (iwithout prejudice to such indemnified party’s indemnity and other rights under the Charter, By-Laws and applicable Law, if any) more than one counsel for all Holders holding Registrable Securities who are unless (A) the indemnifying party and the indemnified party have mutually agreed to the retention of such counsel, (B) the named parties to any such claim, action or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party has been advised in writing by counsel, selected with a copy provided to the Company, that representation of both parties by the Holders holding a majority same counsel would be inappropriate due to actual or potential conflicting interests between them or (C) the indemnifying party has failed to assume the defense of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be such claim and employ counsel reasonably satisfactory to the Company)indemnified party. It is understood that the indemnifying party will not, (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one claim, action or separate but similar proceeding or related actions. An indemnifying party who is not entitled toclaims, actions or elects not toproceedings in the same jurisdiction, assume be liable for the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel at any time for all parties such indemnified parties) and that all such reasonable fees and expenses will be reimbursed reasonably promptly following a written request by an indemnified party stating under which clause of (A) through (C) above reimbursement is sought and delivery of documentation of such fees and expenses. In the case of the retention of any such separate firm for the indemnified parties, such firm will be designated in writing by the indemnified parties. The indemnifying party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld), but if such claim, action or proceeding is settled with such consent or if there has been a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party will have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel as contemplated by the third sentence of this Section 3.08(c), the indemnifying party agrees that it will be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party will not have reimbursed the indemnified party in accordance with respect such request or reasonably objected in writing, on the basis of the standards set forth herein, to the propriety of such claimreimbursement prior to the date of such settlement. No indemnifying party will, unless in without the reasonable judgment prior written consent of any the indemnified party, based on the opinion effect any settlement of counsel, a conflict any pending or threatened proceeding in respect of interest is likely to exist between an which any indemnified party is or could have been a party and any other indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to on claims that are the subject matter of such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyproceeding.
(d) If the indemnification from the indemnifying party provided for in this Section 12 3.08 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Losseslosses, claims, damages, liabilities, judgments, actions or expenses referred to in this Section 3.08, then the indemnifying party, in lieu of indemnifying such indemnified party, shall will contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities, judgments, actions or expenses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which that resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, howeveror (ii) if the allocation provided by clause (i) is not permitted by applicable Law, that no Holder shall be required in such proportion as is appropriate to contribute any amount reflect not only the relative fault referred to in excess clause (i) but also the relative benefit of the amount of Company, on the gross proceedsone hand, after deducting and Tengelmann, on the other, in connection with the statements or omissions that resulted in such losses, claims, damages, liabilities, judgments, actions or expenses, as well as any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationother relevant equitable considerations. The relative fault of such indemnifying party and indemnified party shall will be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made taken by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall will be deemed to include, subject to the limitations set forth in Section 12(c3.08(c), any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation .
(within the meaning of Section 11(fe) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d3.08(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration equitable considerations referred to in Section 3.08(d). No Person guilty of “fraudulent misrepresentation” (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. Notwithstanding the provisions of this Section 12(d3.08(e), Tengelmann shall not be required to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds received by Tengelmann with respect to the Registrable Securities exceed the greater of (A) the amount paid by Tengelmann for its Registrable Securities and (B) the amount of any damages which Tengelmann has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.
(f) For purposes of this Section 3.08, each controlling Person of Tengelmann shall have the same rights to contribution as Tengelmann, and each officer, Director and Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act shall have the same rights to contribution as the Company, subject in each case to the limitations set forth in the immediately preceding paragraph. Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this Section 3.08, notify such party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from who contribution may be sought from any obligation it or they may have under this Section 3.08 or otherwise except to the extent that it has been prejudiced in any material respect by such failure. No party shall be liable for contribution with respect to any action or claim settled without its written consent; provided, however, that such written consent was not unreasonably withheld.
(g) If indemnification is available under this Section 123.08, the indemnifying parties shall party will indemnify each indemnified party to the full extent provided in Section 12(aSections 3.08(a) or 12(b), as the case may be, and (b) without regard to the relative fault of such said indemnifying parties party or indemnified party or any other equitable consideration provided for in this Section 12(d3.08(d) or (e).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Investment Agreement (Great Atlantic & Pacific Tea Co Inc), Stockholder Agreement (Great Atlantic & Pacific Tea Co Inc)
Indemnification; Contribution. (a) The Company agrees to indemnify Secured Parties shall jointly and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the CompanyAdministrative Agent, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective its directors, trustees, officers, shareholders, members, partners, agents, employees and Affiliatesagents (and any other persons with a functionally equivalent role of a person holding such titles notwithstanding a lack of such title or any other title) (individually, an “Indemnified Party”; collectively, “Indemnified Parties”), from and against any and all Losses liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements (including reasonable legal fees) of any kind or nature whatsoever (“Loss”) which may be imposed on, incurred by such party pursuant or asserted against the Indemnified Party in performing the Administrative Agent’s duties hereunder or under the Agreement or any other Transaction Document or in any way relating to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company Agreement or any other indemnified party Transaction Document. The Secured Parties shall reimburse the Administrative Agent for any Loss as incurred but in any event within ten (10) business days of the delivery by the Administrative Agent to the Secured Parties of a written notice setting forth the nature and amount of any such Loss. If the indemnification under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 6 is unavailable to an indemnified party hereunder in respect of Indemnified Party or insufficient to hold an Indemnified Party harmless for any LossesLoss, then the indemnifying party, in lieu of indemnifying such indemnified party, each Secured Party shall contribute to the amount paid or payable by such indemnified party as a result Indemnified Party in proportion to the Secured Parties’ initially purchased respective stated value of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationSeries B Preferred Stock. The relative fault of such indemnifying party indemnity and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to agreements contained in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be are in addition to any other liability which any indemnifying party that the Secured Parties may have to the Indemnified Parties under the Agreement or otherwise. Prior to taking any indemnified party action hereunder or under the Agreement as Administrative Agent, the Administrative Agent may require each Secured Party to deposit with it sufficient sums as it determines in good faith is necessary to protect the Administrative Agent for costs and expenses associated with taking such action and the Administrative Agent may delay taking any such action until such time as it shall have received such sums and shall survive the termination of this Agreementhave no liability hereunder to any party for any such delay.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Security Agreement (Global Diversified Industries Inc), Security Agreement (Global Diversified Industries Inc)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates Act) against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees ' fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “"Losses”") incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with . Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Registration Statement filed pursuant Holder or to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, Person who controls the Company or such underwriter Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise.
(b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and their respective directorseach Person, trusteesif any, officers, partners, agents, employees who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and Affiliates, all other Holders against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no the liability of each Holder hereunder shall be required limited to indemnify the Company or proportion of any other indemnified party such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under this Section 12(b) with respect such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any amount in excess of event to exceed the amount of the gross proceeds, after deducting any underwriting discounts and commissions, net proceeds received by such Holder upon from the sale of the Registrable Securities giving rise to covered by such indemnification obligationRegistration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 10 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding of Registrable Securities who are indemnified parties, selected by the Holders holding of a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (the selection of which selection counsel by such Holders of a majority of such Registrable Securities shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 1210. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 10 is unavailable to an indemnified party hereunder in respect of to any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no the liability of each Holder hereunder shall be required limited to contribute the proportion of any amount such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in excess of any event to exceed the amount of the gross proceeds, after deducting any underwriting discounts and commissions, net proceeds received by such Holder upon from the sale of the Registrable Securities giving rise to covered by such contribution obligationRegistration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d10(d). If indemnification is available under this Section 1210, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a10(a) or 12(b10(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d10(d).
(e) The provisions of this Section 12 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Registration Rights Agreement (Itc Deltacom Inc), Registration Rights Agreement (Itc Deltacom Inc)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless each harmless, to the fullest extent permitted by law, the Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such the Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon upon: (i) any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, ProspectusProspectus or preliminary Prospectus or any amendment or supplement to any of the foregoing, any Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (iA) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such the Holder furnished in writing to the Company by such the Holder or its counsel expressly for use therein, (iiB) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iiiC) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders Holder that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented; or (ii) any violation by the Company of any other federal or state securities laws or regulations applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration. Notwithstanding the foregoing provisions of this Section 2.10(a), the Company shall not be liable to the Holder or any underwriter or to any other indemnified party under the indemnity agreement in this Section 2.10(a) for any Losses that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either: (i) (A) the Holder or such underwriter failed to send or deliver a copy of the Prospectus prior to the time of the sale of Registrable Securities by the Holder or such underwriter to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission; or (ii) (A) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (B) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented as required hereunder, the Holder or such underwriter thereafter fails to deliver such Prospectus, as so amended or supplemented, prior to the time of the sale of Registrable Securities by the Holder or underwriter to the Person asserting the claim from which such Losses arise. Such rights to indemnity and reimbursement of expenses shall survive the transfer of the Registrable Securities by such indemnified party.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each the Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to shall indemnify and hold harmless harmless, to the fullest extent permitted by law, the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliatesaffiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, ProspectusProspectus or preliminary Prospectus or any amendment or supplement to any of the foregoing, any Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a preliminary Prospectus or Free Writing Prospectus or “issuer information,” Prospectus, in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such the Holder furnished in writing to the Company by such the Holder or its counsel specifically for use therein; provided, however, provided that no the Holder shall not be required to indemnify the Company or any other indemnified party under this Section 12(b2.10(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such the Holder upon the sale from sales of the Registrable Securities giving rise to under such indemnification obligationRegistration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 2.10 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties Holder (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties Holder (which selection shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 122.10. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 2.10 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, provided that no the Holder shall not be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such the Holder upon the sale from sales of the Registrable Securities giving rise to such contribution obligationunder the applicable Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c2.10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d2.10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d2.10(d). If indemnification is available under this Section 122.10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a2.10(a) or 12(b2.10(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d2.10(d).
(e) The provisions of this Section 12 2.10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 2.10 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Registration Rights and Governance Agreement (Advisory Board Co), Stock Purchase Agreement (Advisory Board Co)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, the Affiliates, directors, officers, employees, members, managers and agents of each such Holder and each Person, if any, Person who controls any such Holder or such underwriter within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act Act, to the fullest extent permitted by applicable law, from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses to which they or any of them may become subject insofar as such losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid or actions in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedrespect thereof) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained inin a Registration Statement as originally filed or in any amendment thereof, or the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in each connection with investigating or defending any such loss, claim, damage, liability or action (whether or not the indemnified party is a party to any proceeding); provided, however, that the Company will not be liable in any case insofar as to the extent that any such statements loss, claim, damage, liability or omissions arise expense arises (i) out of or are is based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of any such Holder specifically for inclusion therein including, without limitation, any notice and questionnaire, or its counsel expressly for use therein, (ii) the use out of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale sales of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party made during a Suspension Period after notice is given pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company2(e)(ii), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Registration Rights Agreement (Select Energy Services, Inc.), Registration Rights Agreement (Select Energy Services, Inc.)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant harmless, to this Agreementthe extent permitted by law, each Person, if any, who participates as an underwriter in any such offering and sale (i) Eligible Holder of Registrable Securities, and (ii) each Person, if any, who Person that controls such Holder or such underwriter (within the meaning of Section 15 of the Securities Act or and Section 20 of the Exchange Act Act) such Eligible Holder and their (iii) the respective directors, trustees, officers, partners, agentsemployees, employees legal counsel, accountants and Affiliates agents of such Eligible Holder and controlling Person (collectively, “Holder Indemnified Parties”) from and against any and all losses, claims, damages, liabilities and expenses (expenses, including reasonable attorneys’ attorney’s fees and expenses, as incurred, disbursements and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) reasonable expenses of investigation (collectively, “Losses”), caused by any (A) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or any Free Writing Prospectus or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (iB) any such untrue statement violation or alleged untrue statement violation by the Company of the Securities Act, the Exchange Act, any applicable state securities law or omission any rule or alleged omission made regulation promulgated under the Securities Act, the Exchange Act or any applicable state securities law; provided, however, that the Company shall not be liable to any Holder Indemnified Party for any Losses that are (x) caused by or contained in reliance on and in conformity with any information with respect to such Holder furnished in writing to the Company by such or on behalf of a Holder Indemnified Party or its counsel any underwriter expressly for use thereinin any Registration Statement, (ii) the use of Prospectus or preliminary Prospectus or amendment or supplement thereto or any Prospectus, Free Writing Prospectus or “issuer information” after (y) caused by such time as the obligation Holder Indemnified Party’s or any underwriter’s failure to deliver a copy of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any ProspectusStatement, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an preliminary Prospectus or amendment or supplement thereto is required, except such Prospectus, or any Free Writing Prospectus after the Company has furnished such Holder Indemnified Party or “issuer information” such underwriter in a timely manner with a sufficient number of copies of the same. In connection with an Underwritten Offering, the Company shall indemnify such underwriters, each Person who controls such underwriters (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) and each of their respective directors, officers, partners and employees to the same extent as so amended or supplementedprovided above with respect to the indemnification of the Eligible Holders of Registrable Securities.
(b) In connection with any Registration Statement filed pursuant to this Agreementin which a holder of Registrable Securities is participating, each Holder holding Registrable Securities such holder shall furnish to be covered thereby agrees, severally the Company in writing such information and not jointly affidavits as the Company reasonably requests for use in connection with any other Holderssuch Registration Statement, to Prospectus or preliminary Prospectus or amendment or supplement thereto or any Free Writing Prospectus and shall indemnify and hold harmless harmless, to the extent permitted by law, (i) the Company, (ii) each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, Person who controls the Company or such underwriter (within the meaning of Section 15 of the Securities Act or and Section 20 of the Exchange Act) the Company, (iii) each other holder of Registrable Securities participating in any such offering and their (iv) the respective directors, trustees, officers, partners, agentsemployees, employees legal counsel, accountants and Affiliatesagents of each of the Persons specified in the foregoing clauses (i) through (iii), from and against any and all Losses incurred caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin the Registration Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or any Free Writing Prospectus or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue or alleged untrue statement or omission or alleged omission is made contained in reliance on and in conformity with any information with respect to such Holder or affidavit so furnished in writing by or on behalf of such holder expressly for use in such Registration Statement, Prospectus, preliminary Prospectus or amendment or supplement thereto or such Free Writing Prospectus; provided that the obligation to indemnify shall be individual, not joint and several, for each holder and shall be limited to the Company net amount of proceeds received by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required holder from the sale of Registrable Securities pursuant to indemnify such Registration Statement. In connection with an Underwritten Offering by the Company or any holder of the Company’s securities other indemnified party under this than an Eligible Holder, a holder of Registrable Securities participating therein shall indemnify such underwriters, each Person who controls such underwriters (within the meaning of Section 12(b15 of the Securities Act and Section 20 of the Exchange Act) and each of their respective directors, officers, partners and employees to the same extent as provided above with respect to any amount in excess the indemnification of the amount of Company and the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationother holders.
(c) Any Person entitled to indemnification hereunder agrees to shall (i) give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for claim with respect to which such indemnified party may claim Person seeks indemnification or contribution pursuant to this Agreement, (provided that the failure to give such notification prompt notice shall not affect the obligations of the indemnifying party pursuant impair any Person’s right to this Section 12 except indemnification hereunder to the extent such failure has not prejudiced the indemnifying party shall have been actually party) and materially prejudiced as (ii) unless in such indemnified party’s reasonable judgment a result conflict of interest between such failure. In case any indemnified and indemnifying parties may exist with respect to such action shall be brought against any indemnified party and it shall notify the claim, permit such indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, of such claim with counsel reasonably satisfactory to such the indemnified party, and after notice from the indemnifying party to . If such indemnified party of its election so to assume the defense thereofis assumed, the indemnifying party shall not be liable subject to such any liability for any settlement made by the indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by without its consent (but such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party consent shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Companyunreasonably withheld), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one (1) counsel (plus one (1) local counsel in each applicable jurisdiction) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying .
(d) The indemnified party shall be obligated have the right to pay employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such additional counselcounsel shall be paid by the indemnified party unless (x) the indemnifying party agrees to pay the same, provided (y) the indemnifying party fails to assume the defense of such action with counsel reasonably satisfactory to the indemnified party or (z) the indemnified party reasonably believes that the joint representation of the indemnified party and any other party in such proceeding (including the indemnifying party) would be inappropriate under applicable standards of professional conduct. In the case of clause (y) above and (z) above, the indemnifying party shall not be liable for have the fees and expenses right to assume the defense of (A) more than one counsel for all Holders holding Registrable Securities who are such action on behalf of such indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsparty. No indemnifying party, in defense of any such action, suit, proceeding or investigation, party shall, except with without the written consent of each the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or entry into any settlement threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (1) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (2) does not include a statement as to, or an unconditional term thereof the giving admission of, fault, culpability or a failure to act by the claimant or plaintiff on behalf of any indemnified party. The rights afforded to any indemnified party hereunder shall be in addition to any rights that such indemnified party of a release from all liability in respect to such actionmay have at common law, suit, proceeding by separate agreement or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyotherwise.
(de) The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of any indemnified party or any Person that controls (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) such indemnified party and the respective directors, officers, partners, employees, legal counsel, accountants and agents of such indemnified party and controlling Person and shall survive the transfer of Registrable Securities.
(f) If the indemnification required by this Section 7 from the indemnifying party provided for in this Section 12 is unavailable or insufficient to hold harmless an indemnified party hereunder in respect of any Losses, then the referred to in this Section 7:
(i) The indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses Losses, in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, question has been made committed by, or relates to information supplied by, such indemnifying party or indemnified partyparties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionaction in question. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c7(a) and Section 7(b), any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding.
(ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7(f) were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in Section 7(f)(i). No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Registration Rights Agreement (DEX ONE Corp), Registration Rights Agreement (R H Donnelley Corp)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each Holder Stockholder in any offering or sale of Registrable Securities Common Shares pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable SecuritiesCommon Shares, and each Person, if any, who controls such Holder Stockholder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon upon: (i) any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, ProspectusProspectus or preliminary Prospectus or any amendment or supplement to any of the foregoing, any Issuer Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a preliminary Prospectus, an Issuer Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (iA) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder Stockholder furnished in writing to the Company by such Holder Stockholder or its counsel expressly for use therein, (iiB) the use of any Prospectus, Issuer Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iiiC) the use of any Prospectus, Issuer Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders Stockholders that the filing of an amendment or supplement thereto is required, except such Prospectus, Issuer Free Writing Prospectus or “issuer information” as so amended or supplemented; or (ii) any violation by the Company of any other federal or state securities laws or regulations applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration. Notwithstanding the foregoing provisions of this Section 8(a), the Company shall not be liable to any such Stockholder or underwriter or to any other indemnified party under the indemnity agreement in this Section 8(a) for any Losses that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either: (i) (A) such Stockholder or underwriter failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Common Shares by such Stockholder or underwriter to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission; or (ii) (A) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (B) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented as required hereunder, such Stockholder or underwriter thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Common Shares by such Stockholder or underwriter to the Person asserting the claim from which such Losses arise. Such rights to indemnity and reimbursement of expenses shall survive the transfer of the Registrable Common Shares by such indemnified party.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder Stockholder holding Registrable Securities Common Shares to be covered thereby agreesshall, severally and not jointly with any other HoldersStockholders, to indemnify and hold harmless harmless, to the fullest extent permitted by law, the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities Common Shares and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliatesaffiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, ProspectusProspectus or preliminary Prospectus or any amendment or supplement to any of the foregoing, any Issuer Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a preliminary Prospectus or Issuer Free Writing Prospectus or “issuer information,” Prospectus, in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder Stockholder furnished in writing to the Company by such Holder Stockholder or its counsel specifically for use therein; provided, however, that no Holder Stockholder shall be required to indemnify the Company or any other indemnified party under this Section 12(b11(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale Stockholder from sales of the Registrable Securities giving rise to Common Shares of such indemnification obligationStockholder under such Registration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 11 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders Stockholders holding Registrable Securities Common Shares who are indemnified parties, selected by the Holders Stockholders holding a majority Majority of the Registrable Securities Common Shares held by all Holders Stockholders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders Stockholders holding Registrable Securities Common Shares who are indemnified parties, selected by the Holders Stockholders holding a majority Majority of the Registrable Securities Common Shares who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 1211. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 11 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder Stockholder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale Stockholder from sales of the Registrable Securities giving rise to such contribution obligationCommon Shares of the Stockholder under the applicable Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c11(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d11(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d11(d). If indemnification is available under this Section 1211, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a11(a) or 12(b11(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d11(d).
(e) The provisions of this Section 12 11 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 11 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Registration Rights Agreement (PAETEC Holding Corp.), Registration Rights Agreement (PAETEC Holding Corp.)
Indemnification; Contribution. (a) The In connection with any registration of Registrable Securities pursuant to Section 6.01 or Section 6.02 hereof, the Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant harmless, to this Agreementthe fullest extent permitted by Law, each PersonParticipating Stockholder, if anytheir Affiliates, who participates as an underwriter in any such offering directors, officers and sale of Registrable Securities, stockholders and each Person, if any, Person who controls each such Holder or such underwriter Participating Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Indemnified Persons”) against any and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses expenses, joint or several (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedfees) (collectively, “Losses”) incurred caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin any part of any Registration Statement, any preliminary or final prospectus used in connection with the Registrable Securities or any Issuer FWP, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectusprospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading; provided that the Company will not be required to indemnify any Indemnified Persons for any losses, except in each case insofar as such statements claims, damages, liabilities or omissions arise out of or are based upon (i) expenses resulting from any such untrue statement or alleged omission if such untrue statement or omission or alleged omission was made in reliance on and in conformity with any information with respect to such Holder any Indemnified Person furnished in writing to the Company in writing by such Holder or its counsel a Participating Stockholder expressly for use therein. In connection with an underwritten offering, the Company will indemnify each Underwriter, the officers and directors of such Underwriter, and each Person who controls such Underwriter (iiwithin the meaning of either the Securities Act or the Exchange Act) to the use same extent as provided above with respect to the indemnification of any Prospectus, Free Writing Prospectus or “issuer information” after the Participating Stockholders; provided that such time Underwriter agrees to indemnify the Company to the same extent as provided below with respect to the obligation indemnification of the Company to keep effective by the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedParticipating Stockholders.
(b) In connection with any Registration Statement filed pursuant to this AgreementStatement, preliminary or final prospectus or Issuer FWP, each Holder holding Registrable Securities to be covered thereby agreesParticipating Stockholder, severally and not jointly with any other Holders, jointly. agrees to indemnify and hold harmless the Company, each Personthe Directors, if any, its officers who participates as an underwriter in any sign such offering and sale of Registrable Securities Registration Statement and each Person, if any, who controls the Company or such underwriter (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant ) to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required the same extent as the foregoing indemnity from the Company to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleadingParticipating Stockholders, but only with respect to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder any Indemnified Person furnished in writing to the Company in writing by such Holder or its counsel specifically Participating Stockholder expressly for use therein; providedin such Registration Statement, howeverpreliminary or final prospectus, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationIssuer FWP.
(c) Any In case any proceeding (including any governmental investigation) will be instituted involving any Person entitled in respect of which indemnity may be sought pursuant to indemnification hereunder agrees to give prompt written notice Section 6.08(a) or (b), such Person (hereinafter called the “indemnified party”) will promptly notify the Person against whom such indemnity may be sought (hereinafter called the “indemnifying party”) in writing and the indemnifying party, upon request of the indemnified party, will retain counsel reasonably satisfactory to the indemnifying party after the receipt by such indemnified party of any written notice of to represent the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant and will pay the fees and disbursements of such counsel related to this Agreement, such proceeding; provided that failure to give such notification so notify an indemnifying party shall not affect the obligations of the indemnifying party pursuant to this Section 12 relieve it from any liability which it may have hereunder, except to the extent that the indemnifying party shall have been actually and is materially prejudiced as a result of by such failurefailure to give notice. In case any such action shall be brought against proceeding, any indemnified party and it shall notify will have the indemnifying party of the commencement thereof, the indemnifying party shall be entitled right to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of retain its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of own counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for but the fees and expenses of such counsel will be at the expense of such indemnified party unless (i) more than one counsel for all Holders holding Registrable Securities who are the indemnifying party and the indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory party will have mutually agreed to the Company), retention of such counsel or (ii) more than one the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and the indemnified party will have been advised in writing by counsel for that representation of both parties by the underwriters in an Underwritten Offering same counsel would be inappropriate due to actual or (iii) more than one counsel for potential conflicting interests between them. It is understood that the Companyindemnifying party will not, in each case in connection with any one action or separate but similar proceeding or related actions. An indemnifying party who is not entitled toproceedings in the same jurisdiction, or elects not to, assume be liable for the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one counsel separate firm of attorneys (in addition to any local counsel) at any time for all parties such indemnified parties, and that all such reasonable fees and expenses will be reimbursed as they are incurred. In the case of the retention of any such separate firm for the indemnified parties, such firm will be designated in writing by the indemnified parties. The indemnifying party will not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there has been a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party will have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel as contemplated by the third sentence of this Section 6.08(c), the indemnifying party agrees that it will be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 15 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party will not have reimbursed the indemnified party in accordance with respect such request or reasonably objected in writing, on the basis of the standards set forth herein, to the propriety of such claimreimbursement prior to the date of such settlement. No indemnifying party will, unless in without the reasonable judgment prior written consent of any the indemnified party, based on the opinion effect any settlement of counsel, a conflict any pending or threatened proceeding in respect of interest is likely to exist between an which any indemnified party is or could have been a party and any other indemnity could have been sought hereunder by such indemnified party, unless such settlement is of a claim for monetary damages only, such claim has been settled by the payment of money only and such settlement includes an unconditional release of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to on claims that are the subject matter of such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyproceeding.
(d) If the indemnification from the indemnifying party provided for in this Section 12 6.08 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to in this Section 6.08, then the indemnifying party, in lieu of indemnifying such indemnified party, shall will contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which that resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall will be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall will be deemed to include, subject to the limitations set forth in Section 12(c6.08(c), any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation .
(within the meaning of Section 11(fe) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d6.08(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration equitable considerations referred to in Section 6.08(d). No Person guilty of “fraudulent misrepresentation” (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.
(f) Notwithstanding the provisions of this Section 12(d). 6.08, no Participating Stockholder shall be required to make any indemnification or contribution payment, in the aggregate, in any amount in excess of the amount of the net proceeds received by such Participating Stockholder with respect to the Registrable Securities.
(g) If indemnification is available under this Section 126.08, the indemnifying parties shall party will indemnify each indemnified party to the full extent provided in Section 12(aSections 6.08(a) or 12(b), as the case may be, and (b) without regard to the relative fault of such said indemnifying parties party or indemnified party or any other equitable consideration provided for in this Section 12(d6.08(d) or (e).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Stockholder Agreement, Stockholder Agreement (Realnetworks Inc)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates Act) against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees ' fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “"Losses”") incurred by such party pursuant to any actual or ------ threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with . Notwithstanding the foregoing provisions of this Section 10(a), the Company shall not be liable to any Registration Statement filed pursuant Holder or to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, Person who controls the Company or such underwriter Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) under the indemnity agreement in this Section 10(a) for any Losses that arise out of or are based upon any of the matters specified in clause (ii) or (iii) of the immediately preceding sentence or that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented, such Holder thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder to the Person asserting the claim from which such Losses arise.
(b) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with any other Holders), indemnify and hold harmless the Company, its directors and officers, and their respective directorseach Person, trusteesif any, officers, partners, agents, employees who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and Affiliates, all other Holders against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no the liability of each Holder hereunder shall be required limited to indemnify the Company or proportion of any other indemnified party such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under this Section 12(b) with respect such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any amount in excess of event to exceed the amount of the gross proceeds, after deducting any underwriting discounts and commissions, net proceeds received by such Holder upon from the sale of the Registrable Securities giving rise to covered by such indemnification obligationRegistration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 10 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding of Registrable Securities who are indemnified parties, selected by the Holders holding of a majority Majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders holding of Registrable Securities who are indemnified parties, selected by the Holders holding of a majority Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 1210. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 10 is unavailable to an indemnified party hereunder in respect of to any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no the liability of each Holder hereunder shall be required limited to contribute the proportion of any amount such Losses that is equal to the proportion that the net proceeds from the sale of Registrable Securities sold by such Holder under a Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in excess of any event to exceed the amount of the gross proceeds, after deducting any underwriting discounts and commissions, net proceeds received by such Holder upon from the sale of the Registrable Securities giving rise to covered by such contribution obligationRegistration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d10(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d10(d). If indemnification is available under this Section 1210, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a10(a) or 12(b10(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d10(d).
(e) The provisions of this Section 12 10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 2 contracts
Sources: Registration Rights Agreement (Itc Holding Co Inc), Registration Rights Agreement (Itc Deltacom Inc)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementHolder, each Person, if any, who participates as an underwriter in any such offering their respective officers and sale of Registrable Securitiesdirectors, and each Person, if any, who controls such Holder or such underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, any agents, employees and Affiliates representatives or advisers thereof against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ ' fees and expenses, as incurred, expenses and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedreasonable costs of investigation) (collectively, “Losses”"Damages") incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, any Prospectus, or any amendment or supplement to any of the foregoing, (ii) any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, or (iii) any violation or alleged violation by the Company of any United States federal, state or common law rule or regulation applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration except in each case insofar as such statements or omissions the same arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder the Holders furnished in writing to the Company by such Holder the Holders or its their counsel expressly for use therein. Notwithstanding anything in this Agreement to the contrary, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company shall not be required to keep effective the Registration Statement indemnify any Person whose conduct has been determined by a final non-appealable judgment of which such Prospectus forms a part has expired court of competent jurisdiction to constitute bad faith, gross negligence or (iiiwillful misconduct. Subject to Section 11(b) the use of any Prospectushereof, Free Writing Prospectus or “issuer information” after such time as the Company has advised shall not be responsible hereunder for the Holders that fees and expenses of more than one counsel (together with local counsel, if any) for the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) indemnified parties. In connection with any Registration Statement filed pursuant to this Agreementan Underwritten Offering, each Holder holding Registrable Securities to be covered thereby agreesthe Company shall indemnify the underwriters thereof, severally their officers, directors and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities agents and each Person, if any, Person who controls the Company or such underwriter underwriters (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the same extent that any such untrue statement or omission is made in reliance on and in conformity with information as provided above with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess indemnification of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationHolders.
(cb) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, Section 11 (provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 11 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure). In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 11 for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the foregoing, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event if (i) the indemnifying party shall not be liable for the fees and expenses of (i) more than one have employed counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying such indemnified party who is not entitled to, or elects not to, assume to take charge of the defense of such action within a claim shall reasonable time after notice of commencement of such action (so long as such failure to employ counsel is not be obligated to pay the fees and expenses result of more than one counsel for all parties indemnified an unreasonable determination by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect that counsel selected pursuant to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that immediately preceding sentence is unsatisfactory) or if the indemnifying party shall not be liable for have demonstrated to the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority reasonable satisfaction of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory party its ability to the Company)finance such defense, (B) more than one counsel for the underwriters in an Underwritten Offering or (Cii) more than one the indemnified party shall have reasonably concluded or been advised by counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff that there may be legal defenses available to such indemnified party which could result in a conflict of a release from all liability in respect interest for such counsel or prejudice the prosecution of the defenses available to such actionindemnified party, suitthen such indemnified party shall have the right to employ separate counsel of its choosing, proceeding or investigation to at the extent such liability is covered by expense of the indemnity obligations set forth in this Section 12indemnifying party. No indemnified indemnifying party shall consent to entry of any judgment or entry enter into any settlement without the consent (which consent, in the case of each indemnifying an action, suit, claim or proceeding exclusively seeking monetary relief, shall not be unreasonably withheld) of the applicable indemnified party.
(dc) If the indemnification from the indemnifying party provided for in this Section 12 11 is unavailable to an indemnified party hereunder in respect of any LossesDamages referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses Damages in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions or omissions which resulted in such LossesDamages, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such actionaction or omission. The amount paid or payable by a party as a result of the Losses Damages referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c)11(b) hereof, any legal or and other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 11(c) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 11(c). Any underwriter's obligations in this Section 11(c) to contribute shall be several in proportion to the number of Registrable Securities underwritten by them and not joint. Notwithstanding the provisions of this Section 11(c), no underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any Damages which such underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 1211, the indemnifying parties shall indemnify each indemnified party to the full fullest extent provided in Section 12(a11(a) or 12(b), as the case may be, hereof without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d11(c).
(ed) The provisions of this Section 12 11 shall be in addition to any liability which any indemnifying party may have to any indemnified other party and shall survive the any termination of this Agreement.
(f) . The indemnification and contribution required provided by this Section 12 11 shall be survive the Transfer of such Registrable Securities by the Holders and shall remain in full force and effect irrespective of any investigation made by periodic payments or on behalf of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurredan indemnified party.
Appears in 1 contract
Indemnification; Contribution. If any Registrable Securities are included in a registration statement under this Agreement:
(ai) The Company agrees to To the extent permitted by applicable law, Akorn shall indemnify and hold harmless each Holder Holder, and the partners, members, officers, directors, employees, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in any offering or sale of Registrable the Securities pursuant to this Agreement, Act) for each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, Holder; and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act, against any and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (joint or several), including reasonable attorneys’ attorney’s fees and expenses, as incurred, disbursements and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) reasonable expenses of investigation (collectively, “Losses”) ), incurred by such party Person pursuant to any actual or threatened action, suit, proceeding or investigation arising investigation, or to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, but only insofar as such Losses arise out of or are based upon any of the following statements or omissions (collectively, a “Violation”):
(1) any untrue statement or alleged untrue statement of a material fact contained inin the registration statement, including any preliminary Prospectus or final Prospectus contained therein, or any amendments or supplements thereto; or
(2) the omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Acttherein, or necessary to make the statements therein (therein, in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) under which they were made, not misleading; provided, except however, that the indemnification required by this Section 9(f)(i) shall not apply to amounts paid in each settlement of any such Loss if such settlement is effected without the consent of Akorn (which consent shall not be unreasonably withheld), nor shall Akorn be liable in any such case insofar as for any such statements or omissions arise Loss to the extent that it arises out of or are is based upon (ia Violation which occurs in reliance upon and in conformity with information furnished in writing to Akorn by or on behalf of a Holder or any underwriter expressly for use in connection with such registration; and provided, further, that any indemnification required by this Section 9(f)(i) shall not apply to the extent that any such Loss is based on or arises out of an untrue statement or alleged untrue statement of a material fact, or an omission or alleged omission to state a material fact, included in or omitted from any preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement statement, or such omission or alleged omission made in reliance on omission, and in conformity with information with respect a copy of the final prospectus has not been sent or given by the Holder or any underwriter to the Person alleging damage at or prior to the confirmation of sale to such Holder furnished in writing Person; and provided, further, that this indemnity shall not apply to the Company by extent that any such Loss is based on an offer or Transfer of Registrable Securities during any period which Akorn has notified the Holder that such offers and Transfers must cease under the Agreement, including under Section 9(b), Section 9(c)(ii) or its counsel expressly for use therein, Section 9(c)(v).
(ii) To the use of any Prospectusextent permitted by applicable law, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to jointly) shall indemnify and hold harmless Akorn, each of the Companydirectors of Akorn, each of the officers of Akorn who shall have signed the Resale Registration Statement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter Akorn within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directorseach officer, trusteesdirector, officerspartner, partners, agents, employees and Affiliatesemployee of such controlling Person, against any and all Losses incurred by such party Person pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained ininvestigation, or to which any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus other federal or “issuer information,” in the light of the circumstances then existing) not misleadingstate laws, but only insofar as such Losses arise out of or are based upon any Violation, in each case to the extent that any such untrue statement Violation arises out of or omission is made in reliance on and in conformity with based upon information with respect to such Holder furnished in writing to the Company by such or on behalf of a Holder or its counsel specifically expressly for use thereinin connection with such registration, or upon the Holder’s failure to properly and timely deliver an “official” Prospectus, or upon the Holder’s use of a written or oral prospectus other than the “official” Prospectus; provided, however, that any indemnification required by this Section 9(f)(ii) shall not apply to amounts paid in settlement of any such Loss if such settlement is effected without the consent of the Holders (which consent shall not be unreasonably withheld) and in no Holder event shall be required to indemnify the Company or amount of any other indemnity obligation under this Section 9(f)(ii) exceed the gross proceeds from the applicable offering received by the Holders.
(iii) Promptly after receipt by an indemnified party under this Section 12(b9(f) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim indemnification or contribution pursuant under this Section 9(f), such indemnified party shall deliver to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant a written notice thereof and the indemnifying party shall have the right to this Section 12 except participate in, and, to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electdesires, jointly with any other indemnifying party similarly notifiednoticed, to assume the defense thereof, thereof with counsel reasonably satisfactory to the indemnified party; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses (in each case, to the extent reasonable) to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 9(f) to the extent, but only to the extent, of such prejudice but shall not relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 9(f). Any such indemnified party shall have the right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to promptly assume the defense of such action, claim or proceeding or (iii) the named parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and after notice such indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it that are different from or in addition to those available to the indemnifying party to and that the assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party could not faithfully represent the indemnified party (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of its election so to assume the defense thereofindemnifying party, the indemnifying party shall not be liable have the right to assume the defense of such indemnified party for any legal expenses action, claim or proceeding on behalf of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or proceeding or separate but substantially similar or related actions, claims or proceedings in the defense thereof other same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than reasonable costs one separate firm of investigationattorneys (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of any such indemnified party, based on the opinion of counsel, party a conflict of interest is likely to may exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claimaction, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering claim or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claimproceeding, in which event the indemnifying party shall be obligated to pay the reasonable fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Companyor counsels), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(div) If the indemnification required by this Section 9(f) from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then Losses referred to in this Section 9(f):
(1) the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which that resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, Violation has been made committed by, or relates to information supplied by, such indemnifying party or indemnified partyparties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionViolation. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c9(f)(i), 9(f)(ii) and 9(f)(iii), any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding;
(2) the parties hereto agree that it would not be just and equitable if contribution pursuant to this 11(f)(iv) were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in Section 9(f)(iv)(1). No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f11(e) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. .
(v) The parties agree that it would not be just obligations of Akorn and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available Holders under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a9(f) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination completion of any offering of Registrable Securities pursuant to the registration statement under this Agreement, and otherwise.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Modification, Warrant and Investor Rights Agreement (Akorn Inc)
Indemnification; Contribution. (a) The In the case of any offering registered pursuant to this Article 5, the Company hereby indemnifies and agrees to indemnify and hold harmless each selling Holder (and its officers and directors), any underwriter (as defined in any offering or sale the Securities Act) of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any offered by such offering and sale of Registrable SecuritiesHolders, and each Person, if any, who controls such Holder or any such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all any losses, claims, damagesdamages or liabilities, liabilities and expenses (including reasonable attorneys’ fees and expensesjoint or several, as incurredto which any such Persons may be subject, under the Securities Act or otherwise, and to reimburse any amounts paid in of such Persons for any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld legal or delayed) (collectively, “Losses”) other expenses reasonably incurred by them in connection with investigating any claims or defending against any actions, insofar as such party pursuant to any actual losses, claims, damages or threatened action, suit, proceeding or investigation arising liabilities arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained inin the registration statement under which such Registrable Securities were registered under the Securities Act pursuant to this Article 5, the prospectus contained therein (during the period that the Company is required to keep such prospectus current), or any amendment or supplement thereto, or the omission or alleged omission of to state therein (if so used) a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectustherein, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) in which they were made, not misleading, except in each case insofar as such statements losses, claims, damages or omissions liabilities arise out of or are based upon (i) any such untrue statement or omission or alleged untrue statement or omission made in reliance upon information furnished to the Company in writing by any Holder or any underwriter for such Holder specifically for use therein.
(b) By requesting registration under this Article 5, each Holder agrees, if Registrable Securities held by such Holder are included in the securities as to which such registration is being effected, and each underwriter shall agree, in the same manner and to the same extent as set forth in the preceding paragraph, to indemnify and to hold harmless the Company and its directors and officers and each Person, if any, who controls the Company within the meaning of the Securities Act against any losses, claims, damages or liabilities, joint or several, to which any of such Persons may be subject under the Securities Act or otherwise, and to reimburse any of such Persons for any legal or other expenses incurred in connection with investigating or defending against any such losses, claims, damages or liabilities, but only to the extent it arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission of a material fact in any registration statement under which the Registrable Securities were registered under the Securities Act pursuant to this Article 5, any prospectus contained therein, or any amendment or supplement thereto, which was based upon and made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company in writing by such Holder or its counsel such underwriter expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person Each party entitled to indemnification hereunder agrees to under this Section 5.4 (the “Indemnified Party”) shall give prompt written notice to the indemnifying party required to provide indemnification (the “Indemnifying Party”) promptly after the receipt by such indemnified party Indemnified Party has actual knowledge of any written notice of claim as to which indemnity may be sought, and shall permit the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, Indemnifying Party to assume the defense thereofof any such claim or any litigation resulting therefrom, with provided that counsel reasonably satisfactory to such indemnified partyfor the Indemnifying Party, and after notice from the indemnifying party to such indemnified party of its election so to assume who shall conduct the defense thereofof such claim or litigation, shall be approved by the indemnifying party Indemnified Party (whose approval shall not be liable to unreasonably withheld), and the Indemnified Party may participate in such indemnified party for any legal expenses of other counsel or any other expensesdefense at its own expense, in each case subsequently incurred by such indemnified partyand provided, in connection with further that the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment failure of any indemnified party, based on the opinion of counsel, a conflict of interest is likely Indemnified Party to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party give notice as provided herein shall not be liable for relieve the fees and expenses Indemnifying Party of its obligations under this Article 5 unless such failure resulted in actual detriment to the Indemnifying Party. No Indemnifying Party, (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding claim or investigationlitigation, shall, except with the consent of each indemnified partyIndemnified Party, which consent shall not be unreasonably withheld, consent to the entry of any judgment or entry enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party Indemnified Party of a release from all liability in respect to such actionclaim or litigation, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth (ii) shall be liable for amounts paid in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement if such settlement is effected without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any LossesIndemnifying Party, then the indemnifying party, in lieu of indemnifying such indemnified party, which consent shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)unreasonably withheld.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Investor Rights and Restrictions Agreement (Greenbrier Companies Inc)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementNewbridge and its officers, each Persondirectors, if anyshareholders, who participates as an underwriter in any such offering and sale of Registrable Securitiesemployees, affiliates, agents and each Person, if any, person who controls such Holder or such underwriter Newbridge (and any of its affiliates) within the meaning of Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange Act of 1934, as amended (each an “Indemnified Person”), to the fullest extent lawful, against any and their respective directorsall claims, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities liabilities, and expenses (including reasonable attorneys’ all fees and expenses, as incurred, disbursements of counsel and any amounts paid other expenses reasonably incurred in any settlement effected connection with the Company’s consentinvestigation of, preparation for and defense of any pending or threatened claim, action, proceeding, inquiry, investigation or litigation, to which consent shall not be unreasonably withheld or delayedan Indemnified Person may become subject) (collectively, “LossesDamages”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions that arise out of or are based upon (i) related to any such untrue statement actual or alleged untrue statement proposed Transaction or omission Newbridge ‘s engagement under this Agreement. However, this indemnification shall not include any Damages that are found in a final judgment by a court of competent jurisdiction to have resulted from the bad faith, willful misconduct or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use gross negligence of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedNewbridge.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, Newbridge agrees to indemnify and hold harmless the CompanyCompany and its officers, each Persondirectors, if anyshareholders, who participates as an underwriter in any such offering and sale of Registrable Securities employees, affiliates, agents and each Person, if any, person who controls the Company or such underwriter (and any of its affiliates) within the meaning of Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange ActAct of 1934, as amended (each also considered an “Indemnified Person”), to the fullest extent lawful, against any and all claims, losses, damages, liabilities, and their respective directorsexpenses (including all fees and disbursements of counsel and other expenses reasonably incurred in connection with the investigation of, trusteespreparation for and defense of any pending or threatened claim, officersaction, partnersproceeding, agentsinquiry, employees and Affiliatesinvestigation or litigation, against all Losses to which an Indemnified Person may become subject) (collectively, “Damages”) incurred by such party pursuant that arise out of or are related to any actual or threatened actionproposed Corporate Advisory assignment or Newbridge ‘s engagement under this Agreement. However, suitthis indemnification shall not include any Damages that are found in a final judgment by a court of competent jurisdiction to have resulted from the bad faith, proceeding willful misconduct or investigation arising out gross negligence of Newbridge.
c) If the indemnity above is unavailable or based upon any untrue insufficient to hold harmless an Indemnified Person, then appropriate party shall contribute to amounts paid or alleged untrue statement payable by an Indemnified Person for Damages in such proportion as appropriately reflects the relative benefits received by the Company on the one hand and Newbridge on the other. If applicable law does not permit allocation solely on the Exhibit 10.7 Investment Banking Engagement Agreement basis of a material fact contained inbenefits, or any omission or alleged omission of a material fact required to then such contribution shall be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under made in such proportion as appropriately reflects both the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light relative benefits and relative fault of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on parties and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationrelevant equitable considerations.
(cd) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such indemnified the other party of any written notice of any claim or the commencement of any action, suit, proceeding or investigation or threat thereof made in writing action for which an Indemnified Person may be entitled to indemnity, the noticed party shall promptly notify other party of such indemnified party may claim indemnification or contribution pursuant the commencement of such against the Indemnified Person that would give rise to this Agreementindemnification. However, provided that any delay or failure to give such notification shall notify the other party will not affect relieve the obligations other party of the indemnifying party pursuant to this Section 12 its indemnity obligation except to the extent the indemnifying party shall have been actually and it is materially prejudiced as a result of by such delay or failure. In case any such action shall be brought against any indemnified The noticed party and it shall notify may participate in the indemnifying party defense of the commencement thereof, claim and shall assume the indemnifying defense of the claim and shall pay as incurred the fees and disbursements of counsel for the proceeding. In any proceeding where the noticed party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, declines to assume the defense thereof, with or the noticed party’s counsel reasonably satisfactory is deemed to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, have a conflict of interest is likely interest, the Indemnified Person shall have the right to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in retain its own counsel which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company)noticed party. The noticed party shall pay the fees and expenses of such counsel as incurred. However, (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying noticed party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay responsible for the fees and expenses of more than one counsel (other than counsel of record) for all parties indemnified by such indemnifying Indemnified Persons.
e) The noticed party with respect to such will not enter into any waiver, release or settlement for any threatened or pending claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of or settle any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the related litigation for which indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall may be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available sought under this Section 12, the indemnifying parties shall indemnify each indemnified Agreement (whether or not Indemnified Persons are a formal party to the full extent provided in Section 12(a) or 12(blitigation), as unless the case may bewaiver, without regard to the relative fault release or settlement includes an unconditional release of such indemnifying parties or indemnified party or each Indemnified Person from any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any and all liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments arising out of the amount thereof during the course of any threatened or pending claim, action, suitproceeding, proceeding investigation or investigation, as and when invoices are received or Losses are incurredlitigation.
Appears in 1 contract
Sources: Investment Banking Engagement Agreement (CoJax Oil & Gas Corp)
Indemnification; Contribution. (a) The Company Client agrees to indemnify and hold harmless each Holder of CA and ▇▇▇▇▇▇ (together with their affiliates and their respective control persons, directors, officers, employees and agents, “Indemnified Persons”) to the fullest extent permitted by law against any and all claims, losses, damages, liabilities, costs and expenses as incurred (including all reasonable fees and disbursements of counsel and all reasonable travel and other out-of-pocket expenses reasonably incurred in connection with the investigation of, preparation for and defense of any offering pending or sale threatened claim, action, proceeding or investigation and any litigation or other proceeding arising therefrom, to which an Indemnified Person may become subject) (collectively, “Damages”) arising out of Registrable Securities or related to any actual or proposed Private Placement or CA’s and ▇▇▇▇▇▇’▇ engagement hereunder; provided, however, that there shall be excluded from such indemnification any such portion of such Damages as are found in a final judgment by a court of competent jurisdiction to have resulted solely from the willful misconduct or gross negligence on the part of the Indemnified Person, other than any action undertaken at the written request or with the written consent of Client. The foregoing indemnification obligation is in addition to, and not in limitation of, any other rights CA and/or ▇▇▇▇▇▇ may have, including but not limited to any right of contribution. In the event that the foregoing indemnity is unavailable or insufficient to hold harmless an Indemnified Person, then Client shall contribute to amounts paid or payable by an Indemnified Person in respect of such Damages in such proportion as appropriately reflects the relative benefits received by it on the one hand and CA and/or ▇▇▇▇▇▇, as applicable, on the other. If applicable law does not permit allocation solely on the basis of benefits, then such contribution shall be made in such proportion as appropriately reflects both the relative benefits and relative fault of the parties and other relevant equitable considerations. The foregoing is subject to the limitation that in no event shall either CA’s or ▇▇▇▇▇▇’▇ aggregate contributions in respect of Damages exceed the amount of fees actually received by such person pursuant to this Agreement. For purposes hereof, each Personrelative benefits to Client, if anyCA and ▇▇▇▇▇▇ of the Private Placement or other similar transaction shall be deemed to be in the same proportion that the total value paid or received or contemplated to be paid or received by Client and/or its security holders in connection with the Private Placement or other similar transaction bears to the fees paid to CA and ▇▇▇▇▇▇, who participates as respectively, pursuant to their engagement in respect of such Private Placement. CA and/or ▇▇▇▇▇▇ shall promptly notify Client of any claim or threatened claim being asserted against such person which would give rise to an underwriter indemnification hereunder, and agrees that Client shall have the right to participate in the defense of any such offering claim and, to the extent that Client shall wish, to assume the defense thereof and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within shall pay as incurred the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expensesdisbursements of such counsel related to such proceeding. In any such proceeding, as incurredCA and ▇▇▇▇▇▇ shall have the right to retain their own counsel at Client’s expense. Client will not enter into any waiver, and release or settlement with respect to any amounts paid threatened or pending claim, action, proceeding or investigation or settle any litigation arising therefrom in any settlement effected with respect of which indemnification hereunder may be sought (whether or not Indemnified Persons are a formal party thereto) without the Company’s consent, prior written consent of CA (which consent shall not be unreasonably withheld or delayed) (collectively), “Losses”) incurred by unless such party pursuant to waiver, release or settlement includes an unconditional release of each of CA and ▇▇▇▇▇▇ from any actual or threatened action, suit, proceeding or investigation and all liability arising out of such threatened or based upon any untrue or alleged untrue statement of a material fact contained inpending claim, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suitproceeding, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partylitigation.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Placement Agent Agreement (Titan Pharmaceuticals Inc)
Indemnification; Contribution. (ai) The Company agrees to indemnify will indemnify, defend and hold harmless each Holder holder of Stockholder Shares included in any offering or sale of Registrable Securities registration effected pursuant to this Agreement, Section 7 and each Person, if any, who participates as an underwriter in any of such offering and sale of Registrable Securitiessecurities, and each Personperson, if any, who controls each such Holder or such holder and underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act, and their respective partners, directors, officers, stockholders, members, employees, trustees, officers, partners, agents, employees advisors and Affiliates (each, an “Indemnified Person”), to the fullest extent enforceable under applicable law against all claims, losses, claimsdamages and liabilities (or actions or proceedings in respect thereof, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall whether or not be unreasonably withheld or delayedsuch Indemnified Person is a party hereto) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon on any untrue statement (or alleged untrue statement statement) of a material fact contained inin any Disclosure Package, Registration Statement, Prospectus or Free-Writing Prospectus or supplement or amendment thereto related to any such registration or any omission (or alleged omission of omission) to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein not misleading and will reimburse each such Indemnified Person for any legal or any other expenses reasonably incurred in connection with investigating and/or defending (and/or preparing for any investigation or defense of) any such claim, loss, damage, liability, action or proceeding; provided that the Company will not be liable in any such case to any such Indemnified Person if, but only to the case extent that, any such claim, loss, damage, liability, action, proceeding or expense is finally determined by a court of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions competent jurisdiction to arise out of or are based upon (i) result from any such untrue statement or alleged untrue statement in or omission or alleged omission made from written information about such Indemnified Person in reliance on its capacity as a stockholder of the Company and in conformity with information with respect to such Holder furnished in writing to the Company by an instrument duly executed by such Holder or its counsel expressly Indemnified Person and stated to be specifically for use therein, .
(ii) the use Each holder of any ProspectusStockholder Shares will, Free Writing Prospectus or “issuer information” after on a several (not joint) basis, if Stockholder Shares held by such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms holder are included in a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed registration effected pursuant to this AgreementSection 7, each Holder holding Registrable Securities to be covered thereby agreesindemnify, severally and not jointly with any other Holders, to indemnify defend and hold harmless the Company, each Person, if any, of its directors and officers who participates as an underwriter in any such offering and sale of Registrable Securities signs the related Registration Statement and each Personperson, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 and each other holder of Stockholder Shares whose Shares are included in such registration to the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, fullest extent enforceable under applicable law against all Losses incurred by such claims, losses, damages and liabilities (or actions or proceedings in respect thereof, whether or not the Company is a party pursuant to any actual or threatened action, suit, proceeding or investigation hereto) arising out of or based upon on any untrue statement (or alleged untrue statement statement) of a material fact contained inin any such Disclosure Package, Registration Statement, Prospectus or Free-Writing Prospectus or supplement or amendment related to any such registration or any omission (or alleged omission of omission) to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein not misleading and will reimburse the Company, such directors, officers and controlling persons and such other holders for any legal or any other expenses reasonably incurred in connection with investigating and/or defending (and/or preparing for any investigation or defense of) any such claim, loss, damage, liability, action or proceeding, in each case of a Prospectus, a Free Writing Prospectus or “issuer information,” in to the light of the circumstances then existing) not misleadingextent, but only to the extent extent, that any such claim, loss, damage, liability, action, proceeding or expense is finally determined by a court of competent jurisdiction to arise out of or result from any untrue statement in or omission is made from written information about such holder in reliance on its capacity as a stockholder of the Company and in conformity with information with respect to such Holder furnished in writing to the Company by an instrument duly executed by such Holder or its counsel holder and stated to be specifically for use therein; provided, however, provided that no Holder shall be required to indemnify the Company or liability of any other indemnified party such holder under this Section 12(b7(f) with (whether in respect of indemnification or contribution obligations) shall be limited to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, net sales proceeds actually received by such Holder upon holder as a result of the sale by it of the Registrable Securities giving rise to Stockholder Shares in such indemnification obligationregistration.
(ciii) Any Person Each party entitled to indemnification hereunder agrees to under this Section 7(f) (the “Indemnified Party”) shall give prompt written notice to each party required to provide indemnification (the indemnifying party “Indemnifying Party”) promptly after the receipt by such indemnified party Indemnified Party has actual knowledge of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for claim as to which such indemnified party indemnity may claim indemnification or contribution pursuant to this Agreementbe sought, provided that the failure of any Indemnified Party to give such notification notice as provided herein shall not affect relieve the Indemnifying Party of its obligations of the indemnifying party pursuant to under this Section 12 7(f), except to the extent that the indemnifying party shall have been actually and Indemnifying Party is materially prejudiced as a result or otherwise forfeits substantive rights or defenses by reason of such failure. In case If notice of commencement of any such action shall be brought against any indemnified party and it shall notify is given to the indemnifying party of the commencement thereofIndemnifying Party as provided above, the indemnifying party Indemnifying Party shall be entitled to participate therein in and, to the extent that it shall so electmay wish, jointly with any other indemnifying party Indemnifying Party similarly notified, to assume the defense thereofof such claim or any litigation resulting therefrom at its own expenses, with counsel chosen by it, which counsel shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld). Each Indemnified Party may employ separate counsel and participate in such defense, but the fees and expenses of such counsel shall be paid by the Indemnified Party unless (a) the Indemnifying Party agrees to pay such fees and expenses of such counsel, (b) the Indemnifying Party fails to assume the defense of such action with counsel reasonably satisfactory to the Indemnified Party or (c) the named parties to any such indemnified partyaction (including any impleaded parties) include both the Indemnifying Party and the Indemnified Party and the Indemnified Party has been advised by its counsel that either (1) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (2) there may be one or more legal defenses available to the Indemnified Party which are different from or additional to those available to the Indemnifying Party. In any of such cases, and after notice from the indemnifying party to such indemnified party of its election so Indemnifying Party shall not have the right to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to action on behalf of such claimIndemnified Party, in which event it being understood, however, that the indemnifying party Indemnifying Party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one counsel separate firm of attorneys (in addition to any local counsel) for all parties indemnified by Indemnified Parties and all such indemnifying party with respect to such claimexpenses shall be reimbursed as incurred. No Indemnifying Party, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding claim or investigationlitigation, shall, except with the consent of each indemnified partyIndemnified Party, consent to the entry of any judgment or entry enter into any settlement which that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party Indemnified Party of a release from all liability in respect to of such action, suit, proceeding claim or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12litigation. No indemnified party Indemnifying Party shall consent to entry of any judgment or entry into be liable for any settlement entered into without its written consent, which consent shall not be unreasonably withheld. Each Indemnified Party shall furnish such information regarding itself or the consent claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with defense of each indemnifying partysuch claim or litigation resulting therefrom.
(div) If the indemnification from the indemnifying party provided for in this Section 12 7(f) is held by a court of competent jurisdiction to be unavailable to an indemnified party hereunder in Indemnified Party with respect of to any Lossesclaim, loss, damage, liability or expense referred to herein, then the indemnifying partyeach Indemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party hereunder, shall severally, and not jointly, contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses claim, loss, damage, liability or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party Indemnifying Party, on the one hand, or of the Indemnified Party, on the other hand, in connection with the actions which resulted in such Lossesclaim, loss, damage, liability or expense, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party the Indemnifying Party and indemnified party of the Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, by such indemnifying party Indemnifying Party or indemnified party, by the Indemnified Party and the parties’ relative intent, knowledge, access to information information, and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of the Losses any claim, loss, damage, liability or expense referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c)7(f)(ii) and (iii) above, any legal or other fees and fees, changes or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty Anything to the contrary notwithstanding, the total amount to be contributed by any holder of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) Stockholder Shares shall be entitled limited to contribution from any Person who was not guilty of the net proceeds (after deducting the underwriters’ discounts and commissions) received by such fraudulent misrepresentationStockholder in the offering. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 12(d7(f)(iv) were determined by pro rata allocation or by any other method of allocation that does not take into account of the consideration equitable considerations referred to in this the immediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the meeting of Section 12(d). If indemnification is available under this Section 12, 11(f) of the indemnifying parties Securities Act) shall indemnify each indemnified party be entitled to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault contribution from any person who was not guilty of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)fraudulent misrepresentation.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.”
Appears in 1 contract
Sources: Stockholders Agreement (Critical Homecare Solutions Holdings, Inc.)
Indemnification; Contribution. (a) Indemnification by the Company. The Company agrees to ------------------------------ indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementDesignated Holder, each Personits partners, if anydirectors, who participates as an underwriter in any such offering and sale of Registrable Securitiesofficers, affiliates and each Person, if any, Person who controls such Holder or such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act) such Designated Holder from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees costs of investigation) (each, a "Liability" and expensescollectively, as incurred"Liabilities"), and arising --------- ----------- out of or based upon any amounts paid untrue, or allegedly untrue, statement of a material fact contained in any settlement effected with Registration Statement, prospectus or preliminary prospectus (as amended or supplemented if the Company’s consent, which consent Company shall not be unreasonably withheld have furnished any amendments or delayedsupplements thereto) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” not misleading in the light of the circumstances then existing) not misleadingunder which such statements were made, except in each case insofar as such statements or omissions arise Liability arises out of or are is based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made contained in such Registration Statement, preliminary prospectus or final prospectus in reliance on and in conformity with information with respect to concerning such Designated Holder furnished in writing to the Company by such Designated Holder or its counsel expressly for use therein, (ii) including, without limitation, the use of information furnished to the Company pursuant to Section 7(b). The Company shall also provide customary indemnities to any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation underwriters of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any ProspectusRegistrable Securities, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is requiredtheir officers, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally directors and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities employees and each Person, if any, Person who controls the Company or such underwriter underwriters (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the same extent that any such untrue statement or omission is made in reliance on and in conformity with information as provided above with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess indemnification of the amount Designated Holders of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationSecurities.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) Indemnification by the Company. The Company agrees to indemnify ------------------------------ and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Personand, if anyapplicable, who participates as an underwriter in any such offering its directors and sale of Registrable Securities, officers and each Person, if any, person who controls such Holder or such underwriter within the meaning of Section either Sections 15 of the Securities Act or Section 20 of the Exchange Act Act, covered by a registration statement filed pursuant to this Agreement from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees legal and expenses, as incurred, other costs of investigation and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayeddefense) (collectively, “"Losses”") incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact contained in any such registration statement or prospectus relating to the Registrable Securities or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission to state therein a material factfact required to be stated therein or necessary to make the statements therein not misleading, has been made byexcept insofar as such Losses arise out of, or relates are based upon, any untrue statement or omission or allegation thereof based upon information furnished in writing to information supplied bythe Company by such Holder or on such Holder's behalf expressly for use therein; provided, however, that with respect --------- ------- to any untrue statement or omission or alleged untrue statement or omission made in any preliminary or final prospectus, the indemnity agreement contained in this subsection shall not apply to the extent that any such indemnifying party Losses result from the fact that a current copy of the prospectus was not sent or indemnified partygiven to the person asserting any such Losses at or prior to the written confirmation of the sale of the Registrable Securities concerned to such person if it is determined that it was the responsibility of such Holder to provide such person with a current copy of the prospectus and such current copy of the prospectus would have cured the defect giving rise to such Losses. The Company also agrees to indemnify any Underwriters of the Registrable Securities, their officers and directors, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent each person who controls such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (Underwriters within the meaning of Section 11(f) either section 15 of the Securities Act) shall be entitled to contribution from any Person who was not guilty Act or section 20 of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method the Exchange Act on substantially the same basis as the indemnification of allocation that does not take into account the consideration referred to Holders provided in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(dsubsection 7(a).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Registration Rights Agreement (Chase Acquisition Corp)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementShares, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable SecuritiesShares, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreementhereto, each Holder holding of Registrable Securities Shares to be covered thereby agreesshall, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities Shares and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliatesaffiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b11(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to Shares of such indemnification obligationHolder under such Registration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 11 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding of Registrable Securities Shares who are indemnified parties, selected by the Holders holding of a majority of the Registrable Securities held by all Holders Shares who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders holding of Registrable Securities Shares who are indemnified parties, selected by the Holders holding of a majority of the Registrable Securities Shares who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 1211. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 11 is unavailable to an indemnified party hereunder in respect of to any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to such contribution obligationShares of the Holder under the applicable Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c11(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d11(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d11(d). If indemnification is available under this Section 1211, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a11(a) or 12(b11(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d11(d).
(e) The provisions of this Section 12 11 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in In connection with any offering or sale registration of Registrable 30 Securities pursuant to this AgreementSection 3.01 or 3.02 hereof, each Person▇▇▇▇▇▇▇▇ American agrees to indemnify, if anyto the fullest extent permitted by law, who participates as an underwriter in any such offering B&W, its affiliates, their directors, officers and sale of Registrable Securities, shareholders and each Person, if any, Person who controls such Holder or such underwriter B&W (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act Act) against any and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed' fees) (collectively, “Losses”) incurred caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus contained therein, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectusprospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading; provided, except in each case insofar as such statements however, that ▇▇▇▇▇▇▇▇ American shall not be required to indemnify B&W, its affiliates, their officers, directors, shareholders or omissions arise out of controlling Persons for any losses, claims, damages, liabilities or are based upon (i) expenses resulting from any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with any information with respect to B&W or such Holder other parties furnished to ▇▇▇▇▇▇▇▇ American in writing to the Company by B&W or such Holder or its counsel specifically other parties expressly for use therein. In connection with an underwritten offering, ▇▇▇▇▇▇▇▇ American will indemnify each Underwriter, the officers and directors of such Underwriter, and each Person who controls such Underwriter (within the meaning of either the Securities Act or the Exchange Act) to the same extent as provided above with respect to the indemnification of B&W; provided, however, that no Holder shall be required such Underwriter agrees to indemnify ▇▇▇▇▇▇▇▇ American to the Company or any other indemnified party under this Section 12(b) same extent as provided below with respect to the indemnification of ▇▇▇▇▇▇▇▇ American by B&W. Notwithstanding the forgoing, with respect to any amount untrue statement or omission of material fact made in excess any prospectus or preliminary prospectus, the provisions of this Section 3.08 shall not inure to the amount benefit of any Investor Party, any other holder of Registrable Securities or any Underwriter from whom the gross proceedsPerson asserting any such loss, after deducting any underwriting discounts and commissionsclaim, received by such Holder upon the sale of damages, liabilities or expenses purchased the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electbe established that (i) any such loss, jointly claim, damages, liabilities or expenses of such Person arises primarily from the fact that any Investor Party or any Underwriter sold Registrable Securities to such a 31 Person, (ii) there was not sent or given a copy of the final prospectus (as amended or supplemented) at or prior to the written confirmation of such sale (provided ▇▇▇▇▇▇▇▇ American shall have previously furnished a sufficient number of copies thereof on a timely basis to the Investor Parties, any such holder and each Underwriter, as the case may be, in accordance herewith) and (iii) the final prospectus (as amended or supplemented) would have corrected any such untrue statement or omission of a material fact.
(b) In connection with any Registration Statement, the Investor Parties holding Registrable Securities, as the case may be, will furnish to ▇▇▇▇▇▇▇▇ American in writing such information and affidavits with respect to the Investor Parties holding Registrable Securities, as the case may be, as ▇▇▇▇▇▇▇▇ American reasonably requests, including, but not limited to, information relating to the Investor Parties, as the case may be, for use in connection with any such Registration Statement, prospectus or preliminary prospectus and agrees to indemnify ▇▇▇▇▇▇▇▇ American, its directors, its officers who sign the Registration Statement and each Person, if any, who controls ▇▇▇▇▇▇▇▇ American (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from ▇▇▇▇▇▇▇▇ American to B&W, but only with respect to information relating to B&W or such other holders of Registrable Securities, as the case may be, furnished to ▇▇▇▇▇▇▇▇ American in writing by B&W expressly for use in the Registration Statement, the prospectus, any amendment or supplement thereto, or any preliminary prospectus.
(c) In case any proceeding (including any governmental investigation) shall be instituted involving any Person in respect of which indemnity may be sought pursuant to Section 3.08(a) or (b), such Person (hereinafter called the indemnified party) shall promptly notify the Person against whom such indemnity may be sought (hereinafter called the indemnifying party similarly notifiedparty) in writing and the indemnifying party, to assume upon request of the defense thereofindemnified party, with shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and shall pay the fees and disbursements of such counsel 32 related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party, and after notice from party unless (i) the indemnifying party to such and the indemnified party shall have mutually agreed to the retention of its election so such counsel or (ii) the named parties to assume any such proceeding (including any impleaded parties) include both the defense thereof, indemnifying party and the indemnified party and the indemnified party shall have been advised by counsel that representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified partynot, in connection with the defense thereof other than reasonable costs of investigation, unless any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable judgment fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all such indemnified parties, and that all such reasonable fees and expenses shall be reimbursed as they are incurred. In the case of the retention of any such separate firm for the indemnified partyparties, based on such firm shall be designated in writing by the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the parties. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for reasonable fees and expenses of counsel as contemplated by the third sentence of this Section 3.08(c), the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified 30 days after receipt by such indemnifying party with respect to of the aforesaid request and (ii) such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for have reimbursed the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified partiesparty in accordance with such request or reasonably objected in writing, selected by on the Holders holding a majority basis of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory standards set forth herein, to the Company), (B) more than one counsel for propriety of such reimbursement prior to the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsdate of such settlement. No indemnifying party, in defense of any such action, suit, proceeding or investigation, party shall, except with without the prior written consent of each the indemnified party, consent to the entry effect any settlement of any judgment pending or entry into threatened proceeding in respect of which any 33 indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement which does not include as includes an unconditional term thereof the giving by the claimant or plaintiff to release of such indemnified party of a release from all liability in respect to on claims that are the subject matter of such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyproceeding.
(d) If the indemnification from the indemnifying party provided for in this Section 12 3.08 from the indemnifying party is unavailable to an indemnified party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to in this Section 3.08, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which that resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c3.08(c), any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties agree that it would not be just and equitable if contribution pursuant to this Section 3.08(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in this Section 3.08(d). No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). 34 If indemnification is available under this Section 123.08, the indemnifying parties party shall indemnify each indemnified party to the full extent provided in Section 12(aSections 3.08(a) or 12(b), as the case may be, and (b) without regard to the relative fault of such said indemnifying parties party or indemnified party or any other equitable consideration provided for in this Section 12(d3.08(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Business Combination Agreement (Rj Reynolds Tobacco Holdings Inc)
Indemnification; Contribution. (a) The Company agrees and each Guarantor, jointly and severally, agree to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreementthe Initial Purchasers, each PersonHolder, if any, who participates as an underwriter in any such offering and sale of Registrable Securitieseach Participating Broker-Dealer, and each Person, if any, who controls such any Holder or such underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act and their respective directors, trustees, officers, partners, agents, employees each affiliate of any Holder within the meaning of Rule 405 under the 1933 Act from and Affiliates against any and all losses, claims, damagesdamages and liabilities (including, liabilities and without limitation, any legal or other expenses (including reasonable attorneys’ fees and expenses, as incurred, and reasonably incurred in connection with defending or investigating any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld such action or delayedclaim) (collectively, “Losses”) incurred caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement or any amendment thereof or any Prospectus included therein (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or in any Preliminary Prospectus or “issuer free writing prospectus,” as defined in Rule 433 (“Issuer FWP”) of the 1933 Act, relating to a Shelf Registration, pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, if any, or caused by any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements losses, claims, damages or omissions arise out of or liabilities are based upon (i) caused by any such untrue statement or omission or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with based upon information with respect relating to such any Holder furnished in writing to the Company in writing by or on behalf of such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this AgreementEach Holder agrees severally, each Holder holding Registrable Securities to be covered thereby agrees, severally and but not jointly with any other Holdersjointly, to indemnify and hold harmless the Company, each PersonGuarantor, if anythe Initial Purchasers, who participates as an underwriter in any such offering and sale the other selling Holders and each of Registrable Securities their respective directors and officers, and each Person, if any, who controls the Company Company, the Initial Purchasers, or such underwriter any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact the same extent as the foregoing indemnity contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(din Section 4(a) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleadinghereof, but only with reference to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect relating to such Holder furnished in writing to the Company in writing by such Holder or its counsel specifically expressly for use therein; providedin such Registration Statement, however, that Prospectus or amendment or supplement thereto or in any Preliminary Prospectus or Issuer FWP. In no event shall the liability of any Holder shall hereunder be required to indemnify greater in amount than the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the dollar amount of the gross proceeds, after deducting any underwriting discounts and commissions, proceeds received by or on behalf of such Holder upon the sale of the Registrable Securities pursuant to the Registration Statement (or any amendment thereto) giving rise to such indemnification obligation.
(c) Any Person entitled In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to indemnification hereunder agrees Section 4(a) or 4(b) hereof, such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to give prompt written notice the indemnified party to represent the indemnified party and any others the indemnifying party after may designate in such proceeding and shall pay the receipt by reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of unless (i) the indemnifying party pursuant to this Section 12 except and the indemnified party shall have mutually agreed to the extent retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the indemnifying party shall have been actually and materially prejudiced as a result not, in respect of such failure. In case any such action shall be brought against the legal expenses of any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless any proceeding or related proceedings in the reasonable judgment of any indemnified partysame jurisdiction, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel separate firm (in addition to any local counsel) for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are such indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the and that all such fees and expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. LLC, in the case of more than one counsel for all parties indemnified by such indemnifying party with respect pursuant to such claimSection 4(a) and, unless in the reasonable judgment case of any parties indemnified partypursuant to Section 4(b), based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party Company and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the Guarantors. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (Ai) such settlement is entered into more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected 45 days after receipt by the Holders holding a majority such indemnifying party of the Registrable Securities who are aforesaid request, (ii) such indemnifying party shall not have reimbursed the indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request prior to the Company), date of such settlement and (Biii) more than one counsel for such indemnified party shall have given the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsindemnifying party at least 30 days’ prior written notice of its intention to settle. No indemnifying party, in defense of any such action, suit, proceeding or investigation, party shall, except with without the prior written consent of each the indemnified party, consent to the entry effect any settlement of any judgment pending or entry into threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement which (x) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding and (y) does not include a statement as to or admission of fault, culpability or a failure to act, by or on behalf of an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If To the extent that the indemnification from the indemnifying party provided for in this Section 12 4(a) or 4(b) is unavailable to an indemnified party hereunder or insufficient in respect of any Losseslosses, claims, damages or liabilities referred to therein, then the each indemnifying partyparty under such paragraph, in lieu of indemnifying such indemnified partyparty thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the one hand and the indemnified party or parties on the other hand or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party or parties on the one hand and of the indemnified party or parties on the other hand in connection with the actions which statements or omissions that resulted in such Losseslosses, claims, damages or liabilities, as well as any other relevant equitable considerations; provided, however, that no Holder . The relative benefits received by the Company and each Guarantor shall be required deemed to contribute any amount in excess of be equal to the amount of total net proceeds from the gross proceeds, after initial placement pursuant to the Purchase Agreement (before deducting any underwriting discounts and commissions, received by such Holder upon the sale expenses) of the Registrable Securities giving rise to which such contribution obligationlosses, claims, damages or liabilities relate. The relative benefits received by any Holders and the Initial Purchasers shall be deemed to be equal to the value of receiving registration rights under this Agreement for the Registrable Securities. The relative fault of such indemnifying party the Holders and indemnified party the Initial Purchasers on the one hand and the Company and each Guarantor on the other hand shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such indemnifying party by the Holders and the Initial Purchasers or indemnified partyby the Company and each Guarantor, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The Holders’ and the Initial Purchasers’ respective obligations to contribute pursuant to this Section 4(d) are several in proportion to the respective number of Registrable Securities they have sold pursuant to a Registration Statement, and not joint. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 4(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by a an indemnified party as a result of the Losses losses, claims, damages or liabilities referred to above in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth in Section 12(c)above, any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation such action or proceedingclaim. Notwithstanding this Section 4(d), no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of remedies provided for in this Section 12 4 are not exclusive and shall not limit any rights or remedies which may otherwise be in addition available to any liability which any indemnifying party may have to any an indemnified party at law or in equity, hereunder, under the Purchase Agreement or otherwise. The indemnity and contribution provisions contained in this Section 4 shall survive the remain operative and in full force and effect regardless of (i) any termination of this Agreement.
, (fii) The indemnification and contribution required by this Section 12 shall be any investigation made by periodic payments or on behalf of any Holder or Initial Purchaser, any person controlling any Holder or Initial Purchaser or any affiliate of any Holder or Initial Purchaser or by or on behalf of the amount thereof during Company or any Guarantor, its officers or directors or any person controlling the course Company or any Guarantor and (iii) the sale of any action, suit, proceeding Registrable Securities by any Holder or investigation, as and when invoices are received or Losses are incurredInitial Purchaser.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementSRCA and its officers, each Persondirectors, if anyshareholders, who participates as an underwriter in any such offering and sale of Registrable Securitiesemployees, affiliates, agents and each Person, if any, person who controls such Holder or such underwriter SRCA (and any of its affiliates) within the meaning of Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange Act of 1934, as amended (each an “Indemnified Person”), to the fullest extent lawful, against any and their respective directorsall claims, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities liabilities, and expenses (including reasonable attorneys’ all fees and expenses, as incurred, disbursements of counsel and any amounts paid other expenses reasonably incurred in any settlement effected connection with the Company’s consentinvestigation of, preparation for and defense of any pending or threatened claim, action, proceeding, inquiry, investigation or litigation, to which consent shall not be unreasonably withheld or delayedan Indemnified Person may become subject) (collectively, “LossesDamages”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions that arise out of or are based upon (i) related to any such untrue statement actual or alleged untrue statement proposed Transaction or omission Financing or alleged omission made SRCA’s engagement under this Agreement. However, this indemnification shall not include any Damages that are found in reliance on and in conformity with information with respect a final judgment by a court of competent jurisdiction to such Holder furnished in writing to have resulted from the Company by such Holder bad faith, willful misconduct or its counsel expressly for use therein, (ii) the use gross negligence of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedSRCA.
(b) In connection with any Registration Statement filed pursuant If the indemnity above is unavailable or insufficient to hold harmless an Indemnified Person, then the Company shall contribute to amounts paid or payable by an Indemnified Person for Damages in such proportion as appropriately reflects the relative benefits received by the Company on the one hand and SRCA on the other. If applicable law does not permit allocation solely on the basis of benefits, then such contribution shall be made in such proportion as appropriately reflects both the relative benefits and relative fault of the parties and other relevant equitable considerations. However, in no event shall SRCA’s aggregate contributions for Damages exceed the amount of fees actually received by SRCA under this Agreement, each Holder holding Registrable Securities . The relative benefits to the Company and SRCA of a Transaction or Financing shall be deemed to be covered thereby agrees, severally and not jointly with any other Holders, in the same proportion that the total value paid or received or contemplated to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls be paid or received by the Company or such underwriter within its security holders in connection with the meaning of Section 15 of the Securities Act Transaction or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only Financing bears to the extent that any such untrue statement fees paid to SRCA for the Transaction or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationFinancing.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such indemnified party SRCA of notice of any written notice of claim or the commencement of any action, suit, proceeding or investigation or threat thereof made in writing action for which an Indemnified Person may be entitled to indemnity, SRCA shall promptly notify the Company of such indemnified party may claim indemnification or contribution pursuant the commencement of such against the Indemnified Person that would give rise to this Agreementindemnification. However, provided that any delay or failure to give such notification shall notify the Company will not affect relieve the obligations Company of the indemnifying party pursuant to this Section 12 its indemnity obligation except to the extent the indemnifying party shall have been actually and it is materially prejudiced as a result of by such delay or failure. In case any such action shall be brought against any indemnified party and it shall notify The Company may participate in the indemnifying party defense of the commencement thereof, claim and shall assume the indemnifying party defense of the claim and shall be entitled to participate therein and, to pay as incurred the extent that it shall so elect, jointly with fees and disbursements of counsel for the proceeding. In any other indemnifying party similarly notified, proceeding where the Company declines to assume the defense thereofor the Company’s counsel is deemed to have a conflict of interest, with the Indemnified Person shall have the right to retain its own counsel which shall be reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party SRCA. The Company shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for pay the fees and expenses of (i) more than one such counsel for all Holders holding Registrable Securities who are indemnified partiesas incurred. However, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim Company shall not be obligated to pay responsible for the fees and expenses of more than one counsel (other than counsel of record) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyIndemnified Persons.
(d) If the indemnification from the indemnifying party provided The Company will not enter into any waiver, release or settlement for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Lossesthreatened or pending claim, then the indemnifying partyaction, in lieu of indemnifying such indemnified party, shall contribute to the amount paid proceeding or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall settle any related litigation for which indemnification may be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available sought under this Section 12, the indemnifying parties shall indemnify each indemnified Agreement (whether or not Indemnified Persons are a formal party to the full extent provided in Section 12(a) or 12(blitigation), as unless the case may bewaiver, without regard to the relative fault release or settlement includes an unconditional release of such indemnifying parties or indemnified party or each Indemnified Person from any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any and all liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments arising out of the amount thereof during the course of any threatened or pending claim, action, suitproceeding, proceeding investigation or investigation, as and when invoices are received or Losses are incurredlitigation.
Appears in 1 contract
Sources: Investment Banking Engagement Agreement (Prospect Global Resources Inc.)
Indemnification; Contribution. (a) The Company agrees In connection with any registration of Registrable Securities or Underwritten Offering pursuant to indemnify Section 2.01, Section 2.02 or Section 2.03, Boron will indemnify, defend and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementShareholder, each Personits Affiliates, if anydirectors, who participates as an underwriter in any such offering officers, shareholders and sale of Registrable Securities, employees and each Person, if any, Person who controls such Holder or such underwriter Shareholders within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, the “LossesIndemnified Persons”) incurred from and against any and all Losses caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inor incorporated by reference in any part of any Registration Statement or any Prospectus, including any amendment or supplement thereto, used in connection with the Registrable Securities, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading; provided, except in each case insofar as however, that Boron will not be required to indemnify any Indemnified Person for any such statements or omissions arise Loss arising out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing sales pursuant to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement or Prospectus based upon information in the Registration Statement or Prospectus that was represented by Silicon or Silicon Holdings as true and correct in the Merger Agreement, and with respect to which ▇▇▇▇▇ would not have been reasonably expected to discover the failure of which such Prospectus forms a part has expired or (iii) information to be true and correct prior to the use date of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedsales.
(b) In connection with any Registration Statement filed or Prospectus, the Shareholders who sell Registrable Securities pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, such Registration Statement or Prospectus will severally and but not jointly with any other Holdersindemnify, to indemnify defend and hold harmless the CompanyBoron, each Personits directors, if anyits officers, who participates as an underwriter in any such offering and sale of Registrable Securities its employees and each Person, if any, who controls the Company or such underwriter Boron (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from Boron to the Shareholders, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant but only with respect to any actual or threatened action, suit, proceeding or investigation information arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder Shareholder or on such Shareholder’s behalf (in each case, in its counsel specifically capacity as a Shareholder), in either case expressly for use therein; provided, however, that no Holder shall be required to indemnify the Company in any Registration Statement or any other indemnified party under this Section 12(b) with respect to Prospectus, including any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationamendment or supplement thereto.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person in respect of which indemnity may be sought pursuant to Section 2.11(a) or Section 2.11(b), such action shall be brought against any indemnified party and it shall Person (the “Indemnified Party”) will promptly notify the indemnifying party of Person against whom such indemnity may be sought (the commencement thereof, “Indemnifying Party”) in writing and the indemnifying party Indemnifying Party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notifiedwish, to assume the defense thereof, thereof with counsel reasonably satisfactory to the Indemnified Party and will pay the fees and disbursements of such indemnified party, and after notice from the indemnifying party counsel related to such indemnified party proceeding; provided, however, that the failure or delay to give such notice shall not relieve the Indemnifying Party of its election so obligations pursuant to assume this Agreement except to the defense thereof, the indemnifying party extent that it shall not be liable to determined by a court of competent jurisdiction that such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred Indemnifying Party has been prejudiced by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of failure or delay. In any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, action or proceeding, the Indemnified Party shall have the right, but not the obligation, to participate in which event the indemnifying party shall not be liable for any such defense and to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such Indemnified Party unless (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of Indemnifying Party and the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory Indemnified Party have mutually agreed to the Company)retention of such counsel, (ii) more than one counsel for the underwriters in an Underwritten Offering Indemnifying Party fails to assume the defense of the claim, action or proceeding within fifteen (15) Business Days following receipt of notice from the Indemnified Party or (iii) more than one the Indemnified Party and the Indemnifying Party are both actual or potential defendants in, or targets of, any such action and the Indemnified Party has been advised by counsel for that representation of both parties by the Companysame counsel would be inappropriate due to actual or potential conflicting interests between them. It is understood that the Indemnifying Party will not, in each case in connection with any one claim, action or separate but similar proceeding or related actions. An indemnifying party who is not entitled toclaims, actions or elects not toproceedings in the same jurisdiction, assume be liable for the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one counsel (1) separate firm of attorneys (in addition to any local counsel) at any time for all parties indemnified by such indemnifying party with respect to Indemnified Parties and that all such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses will be reimbursed as they are incurred. In the case of the retention of any such additional counselseparate firm for the Indemnified Parties, provided that such firm will be designated in writing by the indemnifying party shall Indemnified Parties. The Indemnifying Party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final judgment for the fees plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and expenses against any Loss by reason of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified partiessuch settlement or judgment. No Indemnifying Party will, selected by without the Holders holding a majority prior written consent of the Registrable Securities who are indemnified parties Indemnified Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder, unless such settlement includes (which selection shall be reasonably satisfactory to the Company), (Bi) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to release of such indemnified party of a release Indemnified Party from all liability in respect to connection with such actionproceeding, suit, proceeding (ii) no finding or investigation to admission of any violation of Law or any violation of the extent such liability is covered rights of any Person by the indemnity obligations set forth Indemnified Party or any of its Affiliates can be made as the result of such action and (iii) the sole relief (if any) provided is monetary damages that are reimbursed in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without full by the consent of each indemnifying partyIndemnifying Party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 Section 2.11 from the Indemnifying Party is unavailable to an indemnified party Indemnified Party hereunder or is insufficient in respect of any LossesLosses referred to in this Section 2.11, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall will contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which that resulted in such Losses, as well as any other relevant equitable considerations; provided, howeveror (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of Boron, on the one hand, and such Shareholder, on the other, in connection with the statements or omissions that no Holder shall be required to contribute resulted in such Losses, as well as any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationother relevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall Indemnified Party will be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made taken by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of the Losses referred to above shall will be deemed to include, subject to the limitations set forth in Section 12(cSection 2.11(c), any reasonable legal or other out of pocket fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation .
(within the meaning of Section 11(fe) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(dSection 2.11(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration equitable considerations referred to in this Section 12(dSection 2.11(d). If No Person guilty of “fraudulent misrepresentation” (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. In no event shall any Shareholder be obligated to provide indemnification is available under this Section 12, or contribution in excess of the indemnifying parties shall indemnify each indemnified party net aggregate proceeds received from the sale of Registrable Securities pursuant to the full extent provided in Section 12(a) applicable Registration Statement or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Prospectus.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Merger Agreement (Banner Corp)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, the Affiliates, directors, officers, employees, members, managers and agents of each such Holder and each Person, if any, Person who controls any such Holder or such underwriter within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act Act, to the fullest extent permitted by applicable law, from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses to which they or any of them may become subject insofar as such losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid or actions in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedrespect thereof) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained inin a Registration Statement as originally filed or in any amendment thereof, or the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in each connection with investigating or defending any such loss, claim, damage, liability or action (whether or not the indemnified party is a party to any proceeding); provided, however, that the Company will not be liable in any case insofar as to the extent that any such statements loss, claim, damage, liability or omissions arise expense arises (i) out of or are is based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of any such Holder specifically for inclusion therein including, without limitation, any notice and questionnaire, or its counsel expressly for use therein, (ii) the use out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 2(e)(iii) hereof. This indemnity agreement will be in addition to any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of liability which the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedmay otherwise have.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally (and not jointly with any other Holders, jointly) agrees to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities Company and each Personof its Affiliates, if anydirectors, employees, members, managers and agents and each Person who controls the Company or such underwriter within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act, to the fullest extent permitted by applicable law, from and their respective directorsagainst any and all losses, trusteesclaims, officersdamages or liabilities to which they or any of them may become subject insofar as such losses, partnersclaims, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual damages or threatened action, suit, proceeding or investigation arising liabilities arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained inin a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, to the extent, but only to the extent extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is made contained in reliance on and in conformity with any written information with respect relating to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically for use inclusion therein; provided, however, that no the total amount to be indemnified by such Holder pursuant to this Section 8(b) shall be required limited to indemnify the Company net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement or Prospectus relates. This indemnity agreement will be in addition to any other liability which any such Holder may otherwise have.
(c) Promptly after receipt by an indemnified party under this Section 12(b) with respect to any amount in excess 8 of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may will, if a claim indemnification or contribution pursuant in respect thereof is to this Agreement, provided that failure to give such notification shall not affect the obligations of be made against the indemnifying party pursuant to under this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in material prejudice to the indemnifying party and forfeiture by the indemnifying party of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, and be counsel to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of its election to so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case expenses subsequently incurred by such indemnified party, party in connection with the defense thereof other than reasonable costs of investigation, unless . Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), and the indemnifying party shall bear the reasonable judgment fees, costs and expenses of any such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party, based on the opinion of counsel, party would present such counsel with a conflict of interest is likely to exist between interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and such the indemnified party and any shall have reasonably concluded that there may be legal defenses available to it and/or other of such indemnified parties with respect which are different from or additional to such claim, in which event those available to the indemnifying party; (iii) the indemnifying party shall not be liable for the fees and expenses of (i) more than one have employed counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for indemnified party to represent the underwriters in an Underwritten Offering indemnified party within a reasonable time after notice of the institution of such action; or (iiiiv) more than one the indemnifying party shall authorize the indemnified party to employ separate counsel for at the Companyexpense of the indemnifying party. No indemnifying party shall, in each case in connection with any one action or separate but substantially similar or related actions. An indemnifying party who is not entitled toactions in the same jurisdiction arising out of the same general circumstances or allegations, or elects not to, assume the defense of a claim shall not be obligated to pay liable for the fees and expenses of more than one counsel separate firm of attorneys (in addition to any local counsel) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the parties. An indemnifying party shall not be liable for under this Section 8 to any indemnified party regarding any settlement or compromise or consent to the fees and expenses entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by whether or not the Holders holding a majority of the Registrable Securities who are indemnified parties (are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party, which selection consent shall not be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsunreasonably withheld. No indemnifying party, in the defense of any such action, suit, proceeding claim or investigationlitigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry enter into any settlement which or compromise that does not include as an unconditional term thereof the giving by the claimant or plaintiff therein, to such indemnified party party, of a full and final release from all liability in respect to such action, suit, proceeding claim or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partylitigation.
(d) If In the indemnification from event that the indemnifying party indemnity provided for in this Section 12 8(a) or Section 8(b) above is unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of for any Lossesreason, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall party agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including, without limitation, legal or payable by other expenses reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to which such indemnified indemnifying party as a result of such Losses may be subject in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and by the indemnified party on the other from the offering of the Class A Common Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the indemnifying party on the one hand and the indemnified party on the other in connection with the actions statements or omissions which resulted in such Losseslosses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such by the indemnifying party on the one hand or the indemnified party, party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The parties agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by pro rata allocation (even if the Holders of Registrable Securities or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 8(d). The amount paid or payable by a an indemnified party as a result of the Losses losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Section 8(d) shall be deemed to include, subject to the limitations set forth in Section 12(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation such action or proceedingclaim. No Notwithstanding the provisions of this Section 8(d), no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to For purposes of this Section 12(d) were determined by pro rata allocation 8, each Person who controls any Holder of Registrable Securities, agent or by underwriter within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of any other method such Holder, agent or underwriter shall have the same rights to contribution as such Holder, agent or underwriter, and each Person who controls the Company within the meaning of allocation that does not take into account either the consideration referred Securities Act or the Exchange Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d8(d).
(e) The provisions of this Section 12 shall be 8 will remain in addition full force and effect, regardless of any investigation made by or on behalf of any Holder of Registrable Securities or the Company or any of the officers, directors or controlling Persons referred to any liability which any indemnifying party may have to any indemnified party in this Section 8 hereof, and shall will survive the termination transfer of this AgreementRegistrable Securities.
(f) The To the extent any indemnification and by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution required with respect to any amounts for which it would otherwise be liable under Section 8 to the fullest extent permitted by this law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 12 11(f) of the ▇▇▇▇ ▇▇▇) in connection with such sale shall be made entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by periodic payments any seller of Registrable Securities shall be limited in amount to the net amount thereof during of proceeds received by such seller from the course sale of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurredsuch Registrable Securities pursuant to such Shelf Registration.
Appears in 1 contract
Sources: Registration Rights Agreement (Select Energy Services, Inc.)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each Holder in any offering or sale of Registrable Securities pursuant to this AgreementSecurities, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon upon: (i) any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (iA) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (iiB) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iiiC) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented; or (ii) any violation by the Company of any other federal or state securities laws or regulations applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration. Notwithstanding the foregoing provisions of this Section 12(a), the Company shall not be liable to any such Holder or underwriter or to any other indemnified party under the indemnity agreement in this Section 12(a) for any Losses that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either: (i) (A) such Holder or underwriter failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder or underwriter to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission; or (ii) (A) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (B) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented as required hereunder, such Holder or underwriter thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder or underwriter to the Person asserting the claim from which such Losses arise. Such rights to indemnity and reimbursement of expenses shall survive the transfer of the Registrable Securities by such indemnified party.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding of Registrable Securities to be covered thereby agreesshall, severally and not jointly with any other Holders, to indemnify and hold harmless harmless, to the fullest extent permitted by law, the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliatesaffiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to of such indemnification obligationHolder under such Registration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding of Registrable Securities who are indemnified parties, selected by the Holders holding of a majority Majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders holding of Registrable Securities who are indemnified parties, selected by the Holders holding of a majority Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of to any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to such contribution obligationof the Holder under the applicable Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 1211, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (ai) The Company agrees to indemnify shall indemnify, defend and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementHolder, each Personits Affiliates, if anyofficers, who participates as an underwriter in any such offering directors, partners, members, managers, employees, agents and sale of Registrable Securitiesrepresentatives, and each Person, if any, Person who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such Holder, to the fullest extent permitted by law, from and their respective directorsagainst any and all losses, trusteesclaims, officersdamages, partnersliabilities, agentsjudgments, employees costs (including reasonable attorneys’ fees) and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation expenses arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact contained in the registration statement or any prospectus included therein, or in any amendment or supplement thereto, or (B) the omission or alleged omission to state in the registration statement or any prospectus a material fact required to be stated therein or necessary to make the statements therein not misleading, except to the extent that such statement or omission was made in reliance upon and in conformity with written information furnished by such Holder expressly for use therein.
(ii) Each Holder, severally and not jointly, shall indemnify, defend and hold harmless the Company, its Affiliates, officers, directors, employees, agents and representatives, and each Person who controls the Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), to the fullest extent permitted by law, from and against any and all losses, claims, damages, liabilities, judgments, costs (including reasonable attorneys’ fees) and expenses arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission to state a material fact, has been made byfact in the registration statement or prospectus, or relates any amendment or supplement thereto, if and to information supplied bythe extent, but only to the extent, such indemnifying party statement or indemnified party, omission was made in reliance upon and the parties’ relative intent, knowledge, access to in conformity with written information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred furnished by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided Holder expressly for in this Section 12(d)use therein.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees Trust hereby indemnifies, to indemnify the fullest extent permitted by law, the Beneficial Owner, its general partners and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, its officers and each Person, if any, who controls such Holder or such underwriter the Beneficial Owner within the meaning of Section 15 of the Securities Act or and Section 20 of the Exchange Act and their respective directorsAct, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys’ fees under the Securities Act, common law and expensesotherwise), as incurred, and any amounts paid in any settlement effected with the Company’s consentjoint or several, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the registration statement contemplated hereby or in any prospectus, preliminary prospectus, any amendment or supplement thereto or any document incorporated by reference relating thereto or in any filing made in connection with the registration or qualification of the offering under "blue sky" or other securities laws of jurisdictions in which the Registrable Securities are offered, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and the Trust shall reimburse the Beneficial Owner for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or proceeding, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, if used prior to the effective date of such registration statement (unless such statement is corrected in the final prospectus and the Trust has previously furnished copies thereof to the Beneficial Owner seeking such indemnification), or contained in the final prospectus (as amended or supplemented if the Trust shall have filed with the Commission any amendment thereof or supplement thereto) if used within the period during which the Trust is required to keep the registration statement to which such prospectus relates current, or the omission or alleged omission to state therein a material fact necessary in order to make the statements therein in light of the circumstances under which they were made, not misleading; provided, however, that such indemnification shall not extend to any such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses that are caused by any untrue statement or alleged untrue statement contained in, or by any omission or alleged omission from, information furnished in writing to the Trust by the Beneficial Owner in such capacity specifically and expressly for use in any such registration statement or prospectus.
(b) In connection with the registration statement contemplated herein, the Beneficial Owner shall furnish to the Trust in writing such information regarding such Person as shall be reasonably requested by the Trust for use in such registration statement or prospectus and the Beneficial Owner hereby indemnifies, to the fullest extent permitted by law, the Trust, its officers and trustees and each Person, if any, who controls the Trust within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act, against any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses resulting from any untrue statement or alleged untrue statement of a material fact or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectusregistration statement or prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) any amendment thereof or supplement thereto, not misleading; provided, except however, that the Beneficial Owner shall be liable hereunder if and only to the extent that any such loss, claim, damage, liability (or proceeding in each case insofar as such statements respect thereof) or omissions arise expense arises out of or are is based upon (i) any such an untrue statement statement, or alleged untrue statement or omission or alleged omission omission, made in reliance on upon and in conformity with information with respect pertaining to such Holder the Beneficial Owner which is requested by the Trust and furnished in writing to the Company Trust by such Holder or its counsel the Beneficial Owner specifically and expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue registration statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationprospectus.
(c) Any Person entitled to seeking indemnification hereunder agrees to give prompt written notice to under the indemnifying party provisions of this Section 7 shall, promptly after the receipt by such indemnified party Person of any written notice of the commencement of any action, suit, proceeding claim or investigation or threat thereof made proceeding, notify each party against whom indemnification is to be sought in writing for which such indemnified of the commencement thereof; provided, however, that the failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of relieve the indemnifying party pursuant to from any liability which it or he may have under this Section 12 7 (except to the extent that it has been prejudiced in any material respect by such failure) or from any liability which the indemnifying party shall have been actually and materially prejudiced as a result of such failuremay otherwise have. In case any such action shall be action, suit, claim or proceeding is brought against any indemnified party party, and it shall notify the notifies an indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying or he may elect by written notice delivered to the indemnified party similarly notifiedpromptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof, thereof with counsel reasonably satisfactory to such indemnified party. Notwithstanding the foregoing, the indemnified party shall have the right to employ its own counsel in any such case, but the fees and after notice from expenses of such counsel shall be at the expense of such indemnified party unless (i) the employment of such counsel shall have been authorized in writing by the indemnifying party in connection with the defense of such suit, action, claim or proceeding, (ii) the indemnifying party shall not have employed counsel (reasonably satisfactory to the indemnified party) to take charge of the defense of such action, suit, claim or proceeding within a reasonable time after notice of commencement of the action, suit, claim or proceeding, or (iii) such indemnified party shall have reasonably concluded, based on the advice of counsel, that there may be defenses available to it which are different from or additional to those available to the indemnifying party which, if the indemnifying party and the indemnified party were to be represented by the same counsel, could result in a conflict of interest for such counsel or materially prejudice the prosecution of the defenses available to such indemnified party. If any of the events specified in clauses (ii) or (iii) of the preceding sentence shall have occurred or shall otherwise be applicable, then the fees and expenses of one counsel or firm of counsel selected by a majority in interest of the indemnified parties shall be borne by the indemnifying party. If, in any case, the indemnified party of its election so to assume the defense thereofemploys separate counsel, the indemnifying party shall not be liable have the right to direct the defense of such indemnified party for any legal expenses action, suit, claim or proceeding on behalf of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party. Anything in this paragraph to the contrary notwithstanding, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment settlement of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, claim or proceeding or investigation, shall, except with effected without its prior written consent (which consent in the consent case of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, claim or proceeding exclusively seeking monetary relief shall not be unreasonably withheld or investigation to the extent such liability is covered by the indemnity obligations set forth delayed). Such indemnification shall remain in this Section 12. No indemnified party shall consent to entry full force and effect irrespective of any judgment investigation made by or entry into any settlement without the consent on behalf of each indemnifying an indemnified party.
(d) If the indemnification from the indemnifying party as provided for in this Section 12 7 is unavailable or is otherwise insufficient to hold harmless an indemnified party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which resulted in such Losseslosses, as well as any other relevant equitable considerations; providedclaims, howeverdamages, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationliabilities or expenses. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement (or alleged untrue untrue) statement of a material fact or omission (or alleged omission omission) to state a material fact, has been made bymade, or relates to information supplied by, by such indemnifying party or such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c)7(d) hereof, any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any such investigation or proceeding. The parties hereto acknowledge that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation or by any other method of allocation other than as described above. Notwithstanding the provisions of this Section 7(d), the Beneficial Owner shall not be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities of the Beneficial Owner were offered to the public exceeds the amount of any damages which the Beneficial Owner has otherwise been required to pay or become liable to pay by reason of such untrue statement or omission. No Person person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If If, however, indemnification is available under this Section 127, the indemnifying parties shall indemnify each indemnified party to the full fullest extent provided in Section 12(aSections 7(a) or 12(b), as the case may be, through 7(d) hereof without regard to the relative fault of such said indemnifying parties party or indemnified party or any other equitable consideration provided for in this Section 12(d)consideration.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Registration Rights Agreement (Pennsylvania Real Estate Investment Trust)
Indemnification; Contribution. (a) The Company agrees to Issuer shall indemnify and hold harmless each Holder in any offering or sale Holder, each of its directors, officers (and partners and managers, as applicable), each underwriter of Registrable Securities pursuant and Indemnified Affiliates of each of them, against any losses, expenses, claims, damages or liabilities (or actions in respect thereof), joint or several, to this Agreementwhich such Holder, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of Indemnified Affiliate may become subject under the Securities Act or Section 20 otherwise, including reasonable costs of the Exchange Act investigation and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities reasonable attorney’s fees and expenses (including reasonable attorneys’ fees each, a “Liability” and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “LossesLiabilities”) incurred by and will reimburse such party pursuant to Holders, underwriters and Indemnified Affiliates for any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, reasonable legal or any omission other expenses incurred in connection with investigating, defending or alleged omission of a material fact required to be stated insettling any such Liability, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as to the extent such statements Liabilities directly or omissions indirectly arise out of or are based upon (i) any such untrue statement or alleged untrue statement of any material fact contained in any registration statement under which such Registrable Securities were registered under the Securities Act or omission any Prospectus contained therein, or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder any amendment or its counsel expressly for use thereinsupplement thereof, or any Disclosure Package, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (therein, in the case of a any such Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made, not misleading or (iii) any violation or alleged violation by the Issuer of any rule or regulation promulgated under the Securities Act or any state securities laws, and shall reimburse each such Holder, underwriter and Indemnified Affiliate for any reasonable legal or any other expenses incurred in connection with investigating, defending or settling any such Liability, provided, that the Issuer shall not be liable in any such case to the extent that any Liability arises out of or is based on any untrue statement or omission based upon and in conformity with written information furnished to the Issuer by an instrument duly executed by such Holder or underwriter specifically for use therein.
(b) Each Holder shall, if Registrable Securities held by or issuable to such Holder are included in the securities as to which such registration is being effected, indemnify and hold harmless the Issuer, each of its directors, officers (and partners and managers, as applicable), each underwriter, if any, of the Issuer’s securities covered by such a registration statement and each other such Holder and Indemnified Affiliates of each of them against all Liabilities arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement or any Prospectus contained therein, or any amendment or supplement thereof, or any Disclosure Package or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein, in the case of any such Prospectus, in light of the circumstances under which they were made, not misleading, and will reimburse the Issuer, such Holders, underwriters and Indemnified Affiliates for any reasonable legal or any other expenses incurred in connection with investigating, defending or settling any such Liability, in each case to the extent, but only to the extent extent, that any such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement or any Prospectus contained therein, or any amendment or supplement thereof, or any Disclosure Package, in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company Issuer by an instrument duly executed by such Holder or its counsel specifically for use therein; provided, however, that no Holder the total amount for which any Holder, its officers, directors and partners, and any Person controlling such Holder, shall be required to indemnify the Company or any other indemnified party liable under this Section 12(b3.8(b) with respect to shall not in any amount in excess of event exceed the amount of the gross proceeds, after deducting any underwriting discounts and commissions, aggregate net proceeds received by such Holder upon from the sale of the Registrable Securities giving rise to sold by such indemnification obligationHolder in such registration.
(c) Any Person Each party entitled to indemnification hereunder agrees to under this Section 3.8 (the “Indemnified Party”) shall give prompt written notice to the indemnifying party required to provide indemnification (the “Indemnifying Party”) promptly after the receipt by such indemnified party of any Indemnified Party has received written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for as to which such indemnified party indemnity may claim indemnification or contribution pursuant to this Agreementbe sought; provided, provided that the failure of any Indemnified Party to give such notification notice as provided herein shall not affect relieve the Indemnifying Party of its obligations of the indemnifying party pursuant to this Section 12 hereunder, except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of that such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, failure resulted in actual detriment to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyIndemnifying Party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 3.8 is held by a court of competent jurisdiction to be unavailable to an indemnified party hereunder in Indemnified Party with respect of to any LossesLiability referred to herein, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party thereunder, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses Liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party, on the one hand, and indemnified party of the Indemnified Party, on the other hand, in connection with the actions statements or omissions which resulted in such Losses, Liability as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess . The relevant fault of the amount of Indemnifying Party and the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such indemnifying party by the Indemnifying Party or indemnified party, by the Indemnified Party and the parties’ relative intent, knowledge, access to information concerning the matter with respect to which the claim was asserted and opportunity to correct or prevent such actionstatement or omission. Notwithstanding the foregoing, the amount any Holder shall be obligated to contribute pursuant to this Section 3.8(d) shall be limited to an amount equal to the net proceeds to such Holder of the Registrable Securities sold pursuant to the registration statement which gives rise to such obligation to contribute (less the aggregate amount of any damages which the Holder has otherwise been required to pay in respect of such Liability or any substantially similar Liability arising from the sale of such Registrable Securities). The amount paid parties agree that it would be neither just nor equitable if contribution pursuant to this Section 3.8(d) were determined by pro rata allocation or payable by a party as a result any other method of allocation that does not take into account the Losses equitable considerations referred to above shall be deemed to include, subject to in the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceedingimmediately preceding sentences. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of indemnification and contribution provided by this Section 12 3.8 shall be in addition a continuing right to any liability which any indemnifying party may have to any indemnified party indemnification and shall survive the registration and sale of any securities by any Person entitled to indemnification and contribution hereunder and the expiration or termination of this Agreement.
(f) The Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution required by this Section 12 contained in the underwriting agreement entered into in connection with an underwritten public offering are in conflict with the foregoing provisions, the provisions in such underwriting agreement shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurredcontrol.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Personperson, if any, who controls such any Holder or such underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damagesdamages and liabilities (including, liabilities and without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) caused by (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedi) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement or any amendment thereof, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein not misleading or (in the case ii) any untrue statement or alleged untrue statement of a Prospectus, a Free Writing material fact contained in any preliminary Prospectus or “issuer information,” any Prospectus (or amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading, ; except in each case insofar as such statements losses, claims, damages or omissions liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information relating to any Holder furnished to the Company in writing by such Holder expressly for use therein. The Company shall also indemnify each Exchanging Dealer participating in the offering and sale of the Notes and each person who controls any such Exchanging Dealer (within the meaning of Section 15 of the Act or Section 20 of the Exchange Act) to the same extent and with the same limitations as provided above with respect to the indemnification of the Holders of the Notes. The foregoing notwithstanding, the Company shall not be liable to the extent that such losses, claims, damages or liabilities arise out of or are based upon (i) any such an untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity any Prospectus that is a preliminary Prospectus if (i) such indemnified person failed to send or deliver a copy of the Prospectus with information with respect or prior to the delivery or written confirmation of the sale of the Notes giving rise to such Holder furnished in writing to the Company by such Holder losses, claims, damages or its counsel expressly for use therein, liabilities and (ii) the use of any Prospectus, Free Writing Prospectus would have corrected such untrue statement or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedomission.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holdersjointly, to indemnify and hold harmless the Company, each Personthe Company's directors, if anythe Company's officers who sign a Registration Statement, who participates as an underwriter in any such offering and sale of Registrable Securities and each Personperson, if any, who controls the Company or such underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange ActAct from and against any and all losses, claims, damages and their respective directorsliabilities (including, trusteeswithout limitation, officers, partners, agents, employees and Affiliates, against all Losses any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement or any amendment thereof, any preliminary Prospectus or any Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto), or caused by any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only the reference to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect relating to such Holder furnished in writing to the Company in writing by such Holder or its counsel specifically expressly for use therein; providedin such Registration Statement, howeverpreliminary Prospectus, that no Holder shall be required to indemnify the Company Prospectus or any other indemnified party under this Section 12(b) with respect to amendments or supplements thereto. In no event shall the liability of any amount in excess Holder of the Notes hereunder be greater in amount than the net dollar amount of the gross proceeds, after deducting any underwriting discounts and commissions, proceeds received by such Holder upon from the sale of the Registrable Securities Notes giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action proceeding (including any governmental investigation) shall be brought against instituted involving any person in respect of which indemnity may be sought pursuant to either of the two proceeding paragraphs, such person (the "indemnified party and it party") shall promptly notify the person against ----------------- whom such indemnity may be sought (the "indemnifying party party") in writing and ------------------ the indemnifying party, upon request of the commencement thereofindemnified party, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with retain counsel reasonably satisfactory to such the indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume represent the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event others the indemnifying party may designate in such proceeding and shall not be liable for pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) more than one counsel for all Holders holding Registrable Securities who are the indemnifying party and, the indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection party shall be reasonably satisfactory have mutually agreed to the Company), retention of such counsel or (ii) more than one the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel for would be inappropriate due to actual or potential differing interests between them. It is understood that the underwriters in an Underwritten Offering or (iii) more than one counsel for the Companyindemnifying party shall not, in each case respect of the legal expenses of any indemnified party in connection with any one action or separate but similar proceeding or related actions. An indemnifying party who is not entitled toproceedings in the same jurisdiction, or elects not to, assume the defense of a claim shall not be obligated to pay liable for (a) the fees and expenses of more than one counsel separate firm (in addition to any local counsel) for all parties indemnified by such indemnifying party with respect to such claimHolders and all persons, unless in if any, who control any Holders within the reasonable judgment meaning of any indemnified partyeither Section 15 of the Act or Section 20 of the Exchange Act, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay (b) the fees and expenses of more than one separate firm (in addition to any local counsel) for the Company and each person, if any, who controls the Company within the meaning of either such additional counselSection, provided and that all such fees and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for the Company and any such control persons of the Company, such firm shall be designated in writing by the Company. In the case of any such separate firm for the Holders or any such control persons of any Holders, such firm shall be designated in writing on behalf of the Majority Holders. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability or reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (Ai) such settlement is entered into more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected 30 days after receipt by the Holders holding a majority such indemnifying party of the Registrable Securities who are aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request prior to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsdate of such settlement. No indemnifying party, in defense of any such action, suit, proceeding or investigation, party shall, except with without the prior written consent of each the indemnified party, consent to the entry effect any settlement of any judgment pending or entry into threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement which does not include as includes an unconditional term thereof the giving by the claimant or plaintiff to release of such indemnified party of a release from all liability in respect to on claims that are the subject matter of such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyproceeding.
(d) If To the extent the indemnification from the indemnifying party provided for in paragraph (a) or (b) of this Section 12 6 is unavailable to an indemnified party hereunder or insufficient in respect of any Losseslosses, claims, damages or liabilities referred to herein, then the each indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party in connection with the actions statements or omissions which resulted in such Losseslosses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, by such indemnifying party or by such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result Holders' respective obligations to contribute pursuant to this paragraph are several in proportion to the respective number of the Losses referred Notes they have sold pursuant to above shall be deemed to includea Registration Statement, subject to and not joint.
(e) The Company and the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Holders agree that it would not be just and or equitable if contribution pursuant to this Section 12(d6(d) were determined by pro rata allocation or by any other method of allocation that does not take into account of the consideration equitable considerations referred to in paragraph (d) of this Section 12(d)6. If indemnification is available under The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities referred to in paragraph (d) of this Section 126 shall be deemed to include, subject to the indemnifying parties shall indemnify each limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 6, a Holder of the Notes shall not be required to contribute any amount in excess of the amount by which the total price at which the Notes sold by such indemnifying party and distributed to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard public were offered to the relative fault public pursuant to any Registration Statement exceeds the amount of any damages which such indemnifying party has otherwise been required to pay by reason of such indemnifying parties untrue or indemnified party alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any other equitable consideration person who was not guilty of such fraudulent misrepresentation. The remedies provided for in this Section 12(d).
(e) The provisions of this Section 12 6 are not exclusive and shall not limit any rights or remedies which may otherwise be in addition to any liability which any indemnifying party may have available to any indemnified party and shall survive the termination of this Agreementat law or in equity.
(f) The indemnification indemnity and contribution required by provisions contained in this Section 12 6 shall be remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by periodic payments of the amount thereof during the course or on behalf of any actionHolder or any person controlling any Holder, suit, proceeding or investigation, as the Company or any person controlling the Company and when invoices are received or Losses are incurred(iii) the sale of any Notes by any Holder.
Appears in 1 contract
Indemnification; Contribution. In each and every circumstance in which the provisions of section 6(e) are inapplicable, the following provisions of this Section shall apply:
(a) The Company agrees shall, to the fullest extent permitted by law, and in addition to any such rights which any Indemnified Investor (as defined below) may have pursuant to statute, the Certificate of Incorporation, or the By-laws of the Company, or otherwise, indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementNew Investor (including its respective directors, officers, partners, employees and agents, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, "INDEMNIFIED INVESTOR") and each person (a "Controlling Person" and collectively with Indemnified Investors, if any, the "Indemnified Parties") who controls such Holder or such underwriter any of them within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and their respective directorsagainst any and all losses, trusteesclaims, officersdamages, partnersexpenses and liabilities, agentsjoint or several (including any investigation, employees legal and Affiliatesother expenses incurred in connection with, against all Losses incurred by such party pursuant to and any actual or threatened amount paid in settlement of, any action, suit, suit or proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inclaim asserted), to which they, or any omission or alleged omission of a material fact required to be stated inthem, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under may become subject by reason of their representation on the Securities Act, or necessary to make the statements therein (in case Board of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light Directors of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use thereinthe New Investors Designee; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect will not be obligated to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such provide indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, New Investors hereunder to the extent that it shall so electsuch loss, jointly with any other indemnifying party similarly notifiedclaim, damage, expense or liability which gives rise to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice claim for indemnification hereunder arises from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel gross negligence or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority willful neglect of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyNew Investors Designee.
(db) If the indemnification from the indemnifying party provided for in this Section 12 11(a) above for any reason (other than with respect to a claim for indemnification arising from the act or omission of the New Investor Designee) is held by a court of competent jurisdiction to be unavailable to an indemnified party hereunder Indemnified Investor in respect of any Losseslosses, claims, damages, expenses or liabilities referred to therein, then the indemnifying partyCompany, in lieu of indemnifying such indemnified partyIndemnified Investor thereunder, shall contribute to the amount paid or payable by such indemnified party Indemnified Investor as a result of such Losses losses, claims, damages, expenses or liabilities in such proportion as is appropriate to reflect the relative fault of the indemnifying party Company and indemnified party the New Investors in connection with the actions action or inaction which resulted in such Losseslosses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, Company and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties New Investors agree that it would not be just and equitable if contribution pursuant to this Section 12(d11(b) were determined by pro rata or per capita allocation or by any other method of allocation that which does not take into account of the consideration equitable considerations referred to in this Section 12(d). If the immediately preceding paragraph.
(c) The indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration and contribution provided for in this Section 12(d)11 will remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Investors or any officer, director, employee, agent or Controlling Person of the Indemnified Investors.
(ed) The Any Indemnified Investor that proposes to assert the right to be indemnified under this Section 11 will, promptly after receipt of notice of commencement of any claim or action against such party in respect of which a claim is to be made against the Company under this Section 11, notify the Company of the commencement of such action, enclosing a copy of all papers served, but the omission so to notify the Company will not relieve the Company from any liability that the Company may have to any Indemnified Investor under the foregoing provisions of this Section 12 11 unless, and only to the extent that, such omission results in the forfeiture of substantive rights or defenses by the Company. The Indemnified Investor will have the right to retain its own counsel in any such action and all fees, disbursements and other charges incurred in the investigation, defense and/or settlement of such action shall be in addition advanced and reimbursed by the Company promptly as they are incurred; provided, however, that the Indemnified Investor shall agree to repay any liability expenses so advanced hereunder if it is ultimately determined by a court of competent jurisdiction that the Indemnified Investor to whom such expenses are advanced is not entitled to be indemnified as a matter of law. The Company shall not settle any action or claim for which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by is sought under this Section 12 shall be made by periodic payments 11 without the prior written consent of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurredIndemnified Investor.
Appears in 1 contract
Indemnification; Contribution. (ai) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, its officers, directors, agents, trustees, stockholders and each Person, if any, Person who controls such Holder or such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directorsAct), trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees attorneys fees, disbursements and expenses, as incurred) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus or preliminary Prospectus, or any amendment or supplement to any of the foregoing, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except in each case insofar as the same arise out of or are based upon (I) any such untrue statement or omission made in reliance on and in conformity with information with respect to such indemnified party furnished in writing to the Company by such indemnified party or its counsel expressly for use therein, (II) the use of any amounts paid in Prospectus after such time as the obligation of the Company to keep such Prospectus effective has expired or (III) the use of any settlement effected Prospectus after such time as the Company has advised the Holders that the filing of a post-effective amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. In connection with an underwritten offering, the Company’s consentCompany shall indemnify the underwriters thereof their officers, which consent directors, agents, trustees, stockholders and each Person who controls such underwriters (within the meaning of Section 14 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Holders of Registrable Securities. Notwithstanding the foregoing provisions of this clause (i) of subsection (i), the Company shall not be unreasonably withheld liable to any Person who participates as an underwriter in the offering or delayedsale of Registrable Securities or any other Person, if any, who controls such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), under the indemnity agreement in this clause (i) of subsection (collectivelyi) for any such loss, “Losses”claim, damage, liability (or action or proceeding in respect thereof) or expense that arises out, of any of the matters specified in clause (II) or (III) above or such Person's failure to send or deliver a copy of the final Prospectus to the Person asserting an untrue statement or alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such final Prospectus and the Company has previously furnished copies thereof to such Holder or other Person in accordance with this Agreement.
(ii) In connection with any Registration Statement filed pursuant hereto, each Holder of Registrable Securities to be covered thereby shall furnish to the Company in writing such information with respect to such Holder, including the Holder's name and address and the amount of Registrable Securities held by such Holder, as the Company reasonably requests for use in such Registration Statement or the related Prospectus and agrees, jointly and severally with all other Holders that are Affiliates of such Holder (and, otherwise, severally and not jointly with all other Holders), to indemnify and hold harmless the Company, all other Holders or any underwriter, as the case may be, and their respective directors, officers, agents, trustees, stockholders and controlling Persons (within the meaning of Section 15 of the Securities Act, or Section 20 of the Exchange Act), against any losses, claims, damages, liabilities and expenses (including reasonable attorney's fees, disbursements and expenses, as incurred), incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any such Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing preliminary Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with to any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use inclusion therein; provided, however, that no the liability of each Holder hereunder shall be required limited to indemnify the Company proportion of any such loss, claim, damage, liability or expense that is equal to the proportion that the net proceeds from the sale of shares sold by such Holder under such registration statement bears to the total net proceeds from the sale of all securities sold thereunder but not in any other indemnified party under this Section 12(b) with respect event to any amount in excess exceed the not proceeds (after deduction of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, commissions and offering expenses payable by such Holder) received by such Holder upon from the sale of the Registrable Securities giving rise to covered by such indemnification obligationRegistration Statement.
(ciii) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect affect, the obligations of the indemnifying party pursuant to this Section 12 subsection (i) except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall not notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified partyParty, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under these indemnification provisions for any legal expenses of other counsel or any any. other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, party a conflict of interest is likely to exist exist, based on the written opinion of counsel, between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (iI) more than one counsel for all Holders holding Holder's of Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Holders of Registrable Securities held by all Holders who are indemnified parties (which selection choice shall be reasonably satisfactory to the Company), (iiII) more than one counsel for the underwriters in an Underwritten Offering or (iiiIII) more than one counsel for the Company, in each case Company in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claimclaims, unless in the reasonable judgment of any indemnified party, party based on the written opinion of counsel, counsel a conflict of interest is likely to may exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counselcounsel or counsels, provided that the indemnifying party shall not be liable for the fees and expenses of (AX) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection choice shall be reasonably satisfactory to the Company), (BY) more than one counsel for the underwriters in an Underwritten Offering or (CZ) more than one counsel for the Company, in each case Company in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability the same is covered by the indemnity obligations set forth in this Section 12subsection (i). No indemnified party shall consent to entry of any judgment or entry into enter any settlement without the consent of each indemnifying party.
(div) If the indemnification from the indemnifying party provided for in this Section 12 subsection (i) is unavailable to an indemnified party hereunder in respect of to any Losseslosses, claims, damages, liabilities or expenses referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities and expenses, as well as any other relevant equitable considerations; provided, however, that no the liability of each Holder hereunder shall be required limited to contribute the proportion of any amount such loss, claim, damage, liability or expense that is equal to the proportion that the net proceeds from the sale of shares sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in excess any event to exceed the net proceeds (after deduction of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, commissions and offering expenses payable by such Holder) received by such Holder upon from the sale of the Registrable Securities giving rise to covered by such contribution obligationRegistration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(cclause (iii) of subsection (i), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, subsection (i) the indemnifying parties shall indemnify each indemnified party party, to the full extent provided in Section 12(aclauses (i) or 12(b(ii) of subsection (i), as the case may be, without regard to to, the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(dclause (iv).
(ev) The provisions of this Section 12 subsection (i) shall be in addition to any liability which any indemnifying party Party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The In the case of each offering of Registrable Shares made pursuant to this Article III, the Company agrees shall, to the extent permitted by applicable law, indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering the Shareholder and sale of Registrable Securities, its directors and officers and each Person, if any, who that controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Shareholder from and against any and all losses, claims, damages or liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and their respective directorsexpenses (including reasonable and documented fees of counsel) (collectively, trustees"Claims") to which each such indemnified party may become subject, officers, partners, agents, employees and Affiliates, against all Losses incurred by insofar as such party pursuant to Claims (including any actual or threatened action, suit, proceeding or investigation arising amounts paid in settlement reached in accordance with the requirements for consent as provided herein) arise out of or are based upon any (i) an untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement, or any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, (ii) any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a any preliminary or final Prospectus (including any Free Writing Prospectus or “issuer information,” incorporated into such Registration Statement), in the light of the circumstances then existingunder which they were made) not misleadingmisleading or (iii) any violation by the Company of the Securities Act, but only the Exchange Act or any state securities law in connection with such offering; provided, however, that the Company shall not be liable to any such indemnified party in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement contained in or omission is made or alleged omission from such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance on upon and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder the Shareholder or its counsel specifically any Representative of the Shareholder expressly for use therein; provided, howeverfurther, that no Holder shall be required to indemnify that the Company or any other indemnified party under this Section 12(b) foregoing indemnity agreement, with respect to any amount in excess Prospectus or Free Writing Prospectus, shall not inure to the benefit of any such indemnified party if the Person asserting any Claims against such indemnified party purchased Shareholder Shares and (x) prior to the time of sale of the Shareholder Shares to such Person (the "Time of Sale"), the Company shall have notified the Shareholder that the Prospectus or Free Writing Prospectus (as it existed prior to the Time of Sale) contains an untrue statement of material fact or omits to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (y) such untrue statement or omission of a material fact was corrected in a Prospectus or Free Writing Prospectus, and such corrected Prospectus or Free Writing Prospectus was provided to the Shareholder in advance of the Time of Sale, and (z) such corrected preliminary Prospectus or Free Writing Prospectus was not conveyed to such Person at or prior to the Time of Sale. In connection with any underwritten offering of Registrable Shares made pursuant to this Article III, the Company shall indemnify and hold harmless each underwriter, the officers and directors of such underwriter and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such underwriter to substantially the same extent as provided above with respect to the indemnification of the Shareholder by the Company.
(b) In the case of each offering of Registrable Shares made pursuant to this Article III, the Shareholder shall, to the extent permitted by applicable law, indemnify and hold harmless the Company and its directors and officers and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, or any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of the circumstances under which they were made) not misleading, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with information furnished in writing to the Company by the Shareholder or any Representative of the Shareholder expressly for use therein. The liability of the Shareholder under the foregoing provisions of this Section 3.8(b) shall be limited to an amount equal to the dollar amount of the gross proceeds, after deducting any underwriting discounts and commissions, net proceeds received by such Selling Holder upon from Shareholder Shares sold by such Selling Holder pursuant to such Registration Statement or Prospectus. In connection with any underwritten offering of Registrable Shares made pursuant to this Article III, the sale Company shall indemnify and hold harmless each underwriter, the officers and directors of such underwriter and each Person, if any, that controls (within the meaning of Section 15 of the Registrable Securities giving rise Act or Section 20 of the Exchange Act) such underwriter and any other selling securityholder in such offering (and, in the case of each such other selling securityholder, such selling securityholder's officers and directors and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such selling securityholder), to such substantially the same extent as provided above with respect to the indemnification obligationof the Company by the Shareholder.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of If, for any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereofreason, the indemnifying party shall be entitled indemnification provisions contemplated by Section 3.8(a) or Section 3.8(b) are unavailable to participate therein and, or are insufficient to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between hold harmless an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any LossesClaims referred to therein other than by the terms of this Section 3.8, then the indemnifying party, in lieu of indemnifying such indemnified party, each Indemnifying Party shall contribute to the amount paid or payable by such indemnified party as a result of such Losses Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party, on the one hand, and the indemnified party in connection party, on the other hand, with the actions which respect to statements or omissions that that resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationClaims. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, by such indemnifying party Indemnifying Party or by such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. If, however, the allocation in the first sentence of this Section 3.8(c) is not permitted by applicable law, then each Indemnifying Party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the Indemnifying Party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 3.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 3.8(c). The amount paid or payable by a an indemnified party as a result of the Losses Claims referred to above shall be deemed to include, include (subject to the limitations set forth in Section 12(c), 3.9) any reasonable and documented legal or other fees and or out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation such action, proceeding or proceedingclaim. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would Notwithstanding the foregoing, the Shareholder shall not be just and equitable if contribution liable to contribute any amount in excess of the dollar amount of the net proceeds received by the Shareholder from Shareholder Shares sold by the Shareholder pursuant to this Section 12(d) were determined by pro rata allocation such Registration Statement or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Prospectus.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Combination Agreement (CF Industries Holdings, Inc.)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreementthe Holders, each Persontheir officers, if any, who participates as an underwriter in any such offering directors and sale of Registrable SecuritiesMembers, and each Person, if any, who controls such Holder any agent or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates investment adviser thereof against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ ' fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, any Prospectus or preliminary Prospectus, or any amendment or supplement to any of the foregoing, or (ii) any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions the same arise out of or are based upon (i) upon, any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder the Holders furnished in writing to the Company by such Holder the Holders or its their counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) . In connection with any Registration Statement filed pursuant to this Agreementan Underwritten Offering, each Holder holding Registrable Securities to be covered thereby agreesthe Company shall indemnify the underwriters thereof, severally their officers, directors and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities agents and each Person, if any, Person who controls the Company or such underwriter underwriters (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Holders. Notwithstanding the foregoing provisions of this Section 13(a), the Company shall not be liable to the Holders, any Person who participates as an underwriter in the offering or sale of Registrable Securities or any other Person, if any, who controls any such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), under this Section 13 for any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense that arises out of an untrue statement or alleged untrue statement or omission or alleged omission in the preliminary Prospectus if the Holders, or other Person on behalf of the Holders, failed to send or deliver a copy of a final Prospectus to the Person asserting the claim prior to the written confirmation of the sale of the Registrable Securities to such Person and such statement or omission was corrected in such final Prospectus and the Company had previously and namely furnished sufficient copies thereof to the Holders in accordance with this Agreement.
(b) In connection with any registration of Registrable Securities pursuant to this Agreement, the Holders shall furnish to the Company and any underwriter in writing such information, including the name, address and the amount of Registrable Securities held by the Holders, as the Company or any underwriter reasonably requests for use in the Registration Statement relating to such registration or the related Prospectus and agrees to indemnify and hold harmless the Company, any underwriter, each such party's officers and directors and each Person who controls each such party (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), and their respective directors, trustees, officers, partners, agents, employees and Affiliates, any agent or investment adviser thereof against all Losses losses, claims, damages, liabilities and expenses (including reasonable attorneys' fees and expenses) incurred by each such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, any Prospectus or preliminary Prospectus, or any amendment or supplement to any of the foregoing, or (ii) any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder the Holders furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under underwriter by the Holders or their counsel specifically for inclusion therein. Notwithstanding the foregoing provisions of this Section 12(b) with respect 13(b), the Holders shall not be liable to the Company, any amount in excess underwriter, each such parties' officers or directors, any other Person who controls any such party (within the meaning of Section 15 of the amount Securities Act or Section 20 of the gross proceedsExchange Act), after deducting or any underwriting discounts and commissionsagent or investment advisor thereof, received by if the Holders had provided information curing any untrue statement or omission in time reasonably sufficient to prevent the inclusion of such Holder upon untrue statement or omission in the sale of the Registrable Securities giving rise to such indemnification obligationRegistration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided Section 13 (PROVIDED that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 13 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure). In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 13 for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the foregoing, unless in if (i) the indemnifying party shall not have employed counsel reasonably satisfactory to such indemnified party to take charge of the defense of such action within a reasonable time after notice of commencement of such action (so long as such failure to employ counsel is not the result of an unreasonable determination by such indemnified party that counsel selected pursuant to the immediately preceding sentence is unsatisfactory) or if the indemnifying party shall not have demonstrated to the reasonable judgment satisfaction of the indemnified party its ability to finance such defense, or (ii) the actual or potential defendants in, or targets of, any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between such action include both the indemnifying party and such indemnified party and any other of such indemnified parties with respect party shall have reasonably concluded that there may be legal defenses available to it which are different from or additional to those available to the indemnifying party which, if the indemnifying party and such indemnified party were to be represented by the same counsel, could result in a conflict of interest for such counsel or materially prejudice the prosecution of the defenses available to such claimindemnified party, then such indemnified party shall have the right to employ separate counsel, in which event the indemnifying party shall not be liable for case the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, or firm of counsel (plus one local or regulatory counsel or firm of counsel) selected by the Holders holding a majority in interest of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to borne by the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay and the fees and expenses of more than one all other counsel for all parties indemnified retained by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay paid by the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry enter into any settlement without the consent (which consent, in the case of an action, suit, claim or proceeding exclusively seeking monetary relief, shall not be unreasonably withheld) of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 13 is unavailable to an indemnified party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities and expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c)13(c) hereof, any legal or and other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 13(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 13(d). Notwithstanding the provisions of this Section 13(d), no underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission and the Holders shall not be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities of the Holders were offered to the public exceeds the amount of any damages which the Holders has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 1213, the indemnifying parties shall indemnify each indemnified party to the full fullest extent provided in Section 12(a13(a) or 12(b)Section 13(b) hereof, as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d13(d).
(e) The provisions of this Section 12 13 shall be in addition to any liability which any indemnifying party may have to any indemnified other party and shall survive the any termination of this Agreement.
(f) . The indemnification and contribution required provided by this Section 12 13 shall be remain in full force and effect irrespective of any investigation made by periodic payments or on behalf of the amount thereof during the course an indemnified party, so long as such indemnified party is not guilty of any actionacting in a fraudulent, suit, proceeding reckless or investigation, as and when invoices are received or Losses are incurredgrossly negligent manner.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each Holder in any offering or sale of Registrable Securities pursuant to this AgreementSecurities, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees ' fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s 's consent, which consent shall not be unreasonably withheld or delayed) (collectively, “"Losses”") incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon upon: (i) any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (iA) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (iiB) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iiiC) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented; or (ii) any violation by the Company of any other federal or state securities laws or regulations applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration. Notwithstanding the foregoing provisions of this Section 11(a), the Company shall not be liable to any such Holder or underwriter or to any other indemnified party under the indemnity agreement in this Section 11(a) for any Losses that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder or underwriter failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder or underwriter to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented as required hereunder, such Holder or underwriter thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder or underwriter to the Person asserting the claim from which such Losses arise. Such rights to indemnity and reimbursement of expenses shall survive the transfer of the Registrable Securities by such indemnified party.
(b) In connection with any Registration Statement filed pursuant to this Agreementhereto, each Holder holding of Registrable Securities to be covered thereby agreesshall, severally and not jointly with any other Holders, to indemnify and hold harmless harmless, to the fullest extent permitted by law, the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliatesaffiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b11(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to of such indemnification obligationHolder under such Registration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 11 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding of Registrable Securities who are indemnified parties, selected by the Holders holding of a majority Majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders holding of Registrable Securities who are indemnified parties, selected by the Holders holding of a majority Majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 1211. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 11 is unavailable to an indemnified party hereunder in respect of to any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to such contribution obligationof the Holder under the applicable Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c11(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d11(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d11(d). If indemnification is available under this Section 1211, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a11(a) or 12(b11(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d11(d).
(e) The provisions of this Section 12 11 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 11 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to Amicus shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within (including the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partnersemployees, agents, employees representatives, officers and Affiliates directors of GSK and its Affiliates) (each a “GSK Indemnitee”) from and against any and all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular (as amended or supplemented if Amicus shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements the same are caused by or omissions arise out of or are based upon (i) contained in any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel expressly for use therein, (ii) in such Registration Statement. ****** - Material has been omitted and filed separately with the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedCommission.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to shall indemnify and hold harmless the CompanyAmicus, each Personand its respective directors, if anyofficers, who participates as an underwriter in any such offering and sale of Registrable Securities employees and each Person, if any, Person who controls the Company or such underwriter Amicus (within the meaning of Section 15 of the Securities Act or Section 20 of and the Exchange Act) from and against any and all losses, claims, damages, liabilities and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation expenses (including reasonable costs of investigation) arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular (as amended or supplemented if Amicus shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any if such untrue statement or omission is was made in reliance on upon and in conformity with any information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify in the Company preparation of such Registration Statement or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationprospectus.
(c) Any Each Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give prompt written notice to the indemnifying party (the “Indemnifying Party”) after the receipt by such indemnified party the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided, provided however, that the failure to give such notification so notify the Indemnifying Party shall not affect relieve the obligations Indemnifying Party of any liability that it may have to the indemnifying party pursuant to this Section 12 except Indemnified Party hereunder unless, and only to the extent that, such failure results in the indemnifying party shall have been actually and materially prejudiced as a result Indemnifying Party’s forfeiture of such failuresubstantive rights or defenses. In case If notice of commencement of any such action shall be brought against any indemnified party and it shall notify is given to the indemnifying party of the commencement thereofIndemnifying Party as above provided, the indemnifying party Indemnifying Party shall be entitled to participate therein in and, to the extent that it shall so electmay wish, jointly with any other indemnifying party Indemnifying Party similarly notified, to assume the defense thereofof such action at its own expense, with counsel chosen by it and reasonably satisfactory to such indemnified party, Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and after notice from the indemnifying party to such indemnified party of its election so to assume participate in the defense thereof, but the indemnifying party shall not be liable to such indemnified party for any legal fees and expenses of other such counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof (other than reasonable costs of investigation, ) shall be paid by the Indemnified Party unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters Indemnified Party in an Underwritten Offering its reasonable judgment or (iii) the named parties to any such action (including any impleaded parties) have been advised by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (y) there may be one or more than one counsel for legal defenses available to it which are different from or additional to those available to the CompanyIndemnifying Party. In either of such cases, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is the Indemnifying Party shall not entitled to, or elects not to, have the right to assume the defense of a claim such action on behalf of such Indemnified Party. No Indemnifying Party shall be liable for any settlement entered into without its written consent (other than in the case where the Indemnifying Party is unconditionally released from liability and its rights are not adversely effected), which consent shall not be obligated to pay the fees unreasonably withheld. ****** - Material has been omitted and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except filed separately with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyCommission.
(d) If the indemnification from the indemnifying party provided for in this Section 12 7.5 from the Indemnifying Party pursuant to applicable law is unavailable to an indemnified party Indemnified Party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault faults of such indemnifying party Indemnifying Party and indemnified party Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(cSections 7.5(a), (b) and (c), any legal or other fees and fees, charges or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7.5(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Person.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementSelling Member, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter Selling Member within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, the officers, partnersdirectors, agents, general and limited partners, members (for Selling Members that are limited liability companies) and employees of each Selling Member and Affiliateseach such controlling Person from and against any and all losses, against all Losses incurred by such party pursuant to any actual claims, damages, liabilities (joint or threatened actionseveral), suit, proceeding or and expenses (including reasonable costs of investigation and attorneys' fees) arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus relating to the Registrable Units or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission to state therein a material factfact required to be stated therein or necessary to make the statements therein not misleading, has been made byexcept insofar as such losses, claims, damages, liabilities or expenses arise out of, or relates are based upon and in conformity with, any such untrue statement or omission or allegation thereof based upon information furnished in writing to information supplied bythe Company by such Selling Member or on such Selling Member's behalf expressly for use therein. The Company also agrees to indemnify any underwriters of the Registrable Units, their officers and directors and each Person who controls such indemnifying party or indemnified partyunderwriters on substantially the same basis as that of the indemnification of the Selling Members provided in this Section 12.6(a).
(b) Each Selling Member agrees to indemnify and hold harmless each other Selling Member, the Company, and each Person, if any, who controls the parties’ relative intent, knowledge, access to information and opportunity to correct Company or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (Selling Member within the meaning of either Section 11(f) 15 of the Securities ActAct or Section 20 of the Exchange Act and the officers, directors, agents, general and limited partners, members (for Selling Members that are limited liability companies) and employees of each other Selling Member, the Company and each such controlling Person to the same extent as the foregoing indemnity from the Company to such Selling Member, but only with respect to information furnished in writing by such Selling Member or on such Selling Member's behalf expressly for use in any registration statement or prospectus relating to the Registrable Units. The liability of any Selling Member under this Section 12.6(b) shall be entitled limited to contribution from any Person who was not guilty of the aggregate cash and property received by such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution Selling Member pursuant to this Section 12(d) were determined the sale of Registrable Units covered by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.registration statement or
Appears in 1 contract
Sources: Limited Liability Company Agreement (Leucadia National Corp)
Indemnification; Contribution. (a) The Company agrees KSI shall indemnify, to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreementthe fullest extent permitted by law, each Personholder of KSI Registrable Securities, its officers, directors, partners, employees and agents, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder holder within the meaning of Section 15 of the Securities Act, against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (under the Securities Act or common law or otherwise), joint or several, resulting from any violation by KSI of the provisions of the Securities Act or any untrue statement or alleged untrue statement of a material fact contained in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus, in light of the circumstances under which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder of KSI Registrable Securities furnished in writing to KSI by such holder expressly for use therein. If the Public Offering pursuant to any registration statement provided for under this Article III is made through underwriters, no action or failure to act on the part of such underwriters (whether or not such underwriter is an Affiliate of any holder of KSI Registrable Securities) shall affect the obligations of KSI to indemnify any holder of KSI Registrable Securities or any other Person pursuant to the preceding sentence. If the Public Offering pursuant to any registration statement provided for under this Article III is made through underwriters, KSI agrees to enter into an underwriting agreement in customary form with such underwriters and KSI agrees to indemnify such underwriters, their officers, directors, employees and agents, if any, and each Person, if any, who controls such underwriters within the meaning of Section 15 of the Securities Act to the same extent as herein before provided with respect to the indemnification of the holders of KSI Registrable Securities; provided that KSI shall not be required to indemnify any such underwriter, or any officer, director or employee of such underwriter or any Person who controls such underwriter within the meaning of Section 15 of the Securities Act, to the extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is claimed results from such underwriter's failure to send or give a copy of an amended or supplemented final prospectus to the Person asserting an untrue statement or alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of KSI Registrable Securities to such Person if such statement or omission was corrected in such amended or supplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus.
(b) In connection with any registration statement in which a holder of KSI Registrable Securities is participating, each such holder, severally and not jointly, shall indemnify, to the fullest extent permitted by law, KSI, each underwriter and their respective officers, directors, employees and agents, if any, and each Person, if any, who controls KSI or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directorsAct, trustees, officers, partners, agents, employees and Affiliates against all any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon resulting from any untrue statement or alleged untrue statement of a material fact contained infact, or any omission or alleged omission of a material fact required to be stated in, in the registration statement or prospectus or preliminary prospectus or any Registration Statement, Prospectus, Free Writing Prospectus amendment thereof or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, supplement thereto or necessary to make the statements therein (in the case of a Prospectusany prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any but only to the extent that such untrue statement is contained in or alleged untrue statement or such omission or alleged omission made in reliance on and in conformity with is from information with respect to such Holder so concerning a holder furnished in writing to the Company by such Holder or its counsel holder expressly for use therein, (ii) ; provided that such holder's obligations hereunder shall be limited to an amount equal to the use of any Prospectus, Free Writing Prospectus or “issuer information” after net proceeds to such time as the obligation holder of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed KSI Registrable Securities sold pursuant to this Agreementsuch registration statement; and provided further that, each Holder holding Registrable Securities to without such holder's consent, such holder shall not be covered thereby agrees, severally and not jointly with any other Holders, required to indemnify and hold harmless the CompanyKSI, each Person, if any, who participates as an underwriter in any such offering and sale underwriter, or any of Registrable Securities and each Persontheir officers, if any, directors or employees or any Person who controls the Company KSI or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directorsto the extent that the loss, trusteesclaim, officersdamage, partners, agents, employees and Affiliates, against all Losses incurred by liability (or proceedings in respect thereof) or expense for which indemnification is claimed results from such party pursuant underwriter's failure to any actual send or threatened action, suit, proceeding give a copy of an amended or investigation arising out of or based upon any supplemented final prospectus to the Person asserting an untrue statement or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required at or prior to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light written confirmation of the circumstances then existing) not misleading, but only sale of KSI Registrable Securities to the extent that any such untrue Person if such statement or omission is made was corrected in reliance on and in conformity with information with respect such amended or supplemented final prospectus prior to such Holder furnished in writing to written confirmation and the Company by underwriter was provided with such Holder amended or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationsupplemented final prospectus.
(c) Any Person entitled to indemnification hereunder agrees to under the provisions of this Section 3.7 shall (i) give prompt written notice to the indemnifying party after the receipt by of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party party's reasonable judgment a conflict of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which interest between such indemnified party and indemnifying parties may claim indemnification or contribution pursuant to this Agreementexist in respect of such claim, provided that failure to give permit such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereofof such claim, with counsel reasonably satisfactory to such the indemnified party; and if such defense is so assumed, and after notice from the such indemnifying party to such shall not enter into any settlement without the consent of the indemnified party of its election so if such settlement attributes liability to assume the defense thereof, the indemnified party and such indemnifying party shall not be liable subject to such indemnified party any liability for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party settlement made without its consent (which shall not be unreasonably withheld); and any other of such indemnified parties underwriting agreement entered into with respect to such claim, in which any registration statement provided for under this Article III shall so provide. In the event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled toentitled, or elects not tonot, to assume the defense of a claim claim, such indemnifying party shall not be obligated to pay the fees and expenses of more than one counsel or firm of counsel for all parties indemnified by such indemnifying party with in respect to of such claim, unless in the reasonable judgment of any such indemnified party, based on the opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with in respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If for any reason the indemnification from the indemnifying party provided for in this Section 12 foregoing indemnity is unavailable to an indemnified party hereunder in respect of any Lossesunavailable, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such the indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other or (ii) if the allocation provided by clause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, in such proportion as is appropriate to reflect not only the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other but also the relative fault of the indemnifying party and the indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided. Notwithstanding the foregoing, however, that no Holder holder of KSI Registrable Securities shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise holder would have been required to such contribution obligation. The relative fault of such indemnifying party and pay to an indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and if the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in indemnity under Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding3.7(b) was available. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution obligation of any Person to contribute pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does 3.7 shall be several and not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)joint.
(e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 12 shall be in addition 3.7 to any liability which any indemnifying party may have to any or for the account of the indemnified party from time to time promptly upon receipt of bills or invoices relating thereto or when otherwise due or payable.
(f) The indemnity and contribution agreements contained in this Section 3.7 shall remain in full force and effect regardless of any investigation made by or on behalf of a participating holder of KSI Registrable Securities, its officers, directors, members, agents or any Person, if any, who controls such holder as aforesaid, and shall survive the Transfer of Equity Securities by such holder and the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (ai) The Company agrees Purchaser shall, without limitation as to time, indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant harmless, to this Agreementthe full extent permitted by law, each Personthe Sole Shareholder and the officers, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partnersmembers, agents, and employees of the Sole Shareholder (each, an "Indemnified Party"), to the fullest extent lawful, from and Affiliates against any and all losses, claims, damages, liabilities liabilities, actions, or proceedings (whether commenced or threatened) reasonable costs (including, without limitation, reasonable costs of preparation and reasonable attorneys' fees) and reasonable expenses (including reasonable attorneys’ fees and expensesexpenses of investigation) (collectively, "Losses"), as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin any registration statement filed in connection with a Demand Registration or an Incidental Registration, any related prospectus or form of prospectus or in any amendment or supplements thereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by extent, but only to the extent, that such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact is contained in, or any such omission or alleged omission of a material fact is required to be stated contained in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under information so furnished in writing by the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only Sole Shareholder to the extent Purchaser expressly for use in such registration statement or prospectus and that any such untrue statement or omission is made was reasonably relied upon by Purchaser in reliance on and in conformity with information with respect to preparation of such Holder furnished in writing to the Company by such Holder registration statement, prospectus or its counsel specifically for use thereinform of prospectus; provided, however, that no Holder the Sole Shareholder shall not be required liable in any such case to indemnify the Company extent that the Sole Shareholder has furnished in writing to Purchaser within a reasonable period of time prior to the filing of any such registration statement or related prospectus or amendment or supplement thereto information expressly for use in such registration statement or prospectus or any other indemnified party under this Section 12(b) with respect amendment or supplement thereto which corrected or made not misleading, information previously furnished to any amount in excess of the amount of the gross proceedsPurchaser, after deducting any underwriting discounts and commissions, received by Purchaser failed to include such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationinformation therein.
(cii) Any Person entitled to indemnification hereunder agrees to Indemnified Party shall give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice Purchaser of the commencement of any action, suit, proceeding proceeding, or investigation or written threat thereof made in writing for (a "Proceeding") with respect to which such indemnified party may claim Indemnified Party seeks indemnification or contribution pursuant to this Agreementhereto; provided, provided however, that the failure to give such notification so notify Purchaser shall not affect the obligations of the indemnifying party pursuant to this Section 12 relieve Purchaser from any obligation or liability except to the extent the indemnifying party shall have that Purchaser has been actually and materially prejudiced as a result of by such failure. In case Purchaser shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the receipt of written notice from such Indemnified Party of such Proceeding, to assume, at the Purchaser's expense, the defense of any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereofProceeding, with counsel reasonably satisfactory to such indemnified partyIndemnified Party; provided, however, that an Indemnified Party or Indemnified Parties (if more than one such Indemnified Party is named in any Proceeding) shall have the right to employ separate counsel in any such Proceeding and after notice from the indemnifying party to such indemnified party of its election so to assume participate in the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that counsel shall be at the indemnifying party expense of such Indemnified Party or Indemnified Parties. Purchaser shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry enter into any settlement which (1) provides for other than monetary damages without the consent of the Indemnified Party or Indemnified Parties (which consent shall not be unreasonably withheld or delayed) or (2) does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party Indemnified Party or Indemnified Parties of a release release, in form and substance satisfactory to the Indemnified Party or Indemnified Parties, from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in Proceeding for which such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall Indemnified Party would be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)hereunder.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) Indemnification by the Company. The Company agrees to ------------------------------- indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant harmless, to this Agreementthe fullest extent permitted by law, each PersonDesignated Holder, if anyits officers, who participates as an underwriter in any such offering directors, trustees, partners, employees, advisors and sale of Registrable Securities, agents and each Person, if any, Person who controls such Holder or such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act) such Designated Holder from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as the same are caused by or contained in any information concerning such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Designated Holder furnished in writing to the Company by such Designated Holder or its counsel expressly for use therein, (ii) including, without limitation, the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder pursuant to Section 8(b). The Company shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect also provide customary indemnities to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale underwriters of the Registrable Securities giving rise to Securities, their officers, directors and employees and each Person who controls such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(fthe Securities Act and the Exchange Act) to the same extent as provided above with respect to the indemnification of the Securities Act) shall be entitled to contribution from any Person who was not guilty Designated Holders of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Registrable Securities.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless harmless, to the fullest extent permitted by law, (i) each Holder in any offering or sale of Registrable Securities pursuant to this Agreementand, as applicable, its affiliates, officers, directors, employees, representatives and agents (collectively, the “Holder Indemnified Persons”) and (ii) each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, Person who controls such Holder or such underwriter (within the meaning of Section 15 of the Securities Act or and Section 20 of the Exchange Act Act) any such Holder Indemnified Person, in each case, from and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, actions, judgments, damages, liabilities liabilities, costs and expenses, including reasonable expenses (including of investigation and reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) expenses (collectively, “Losses”) incurred by such party pursuant to any actual or threatened actioncaused by, suit, proceeding or investigation arising out of of, resulting from, based on or based upon relating to (A) any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement thereto, or any documents incorporated therein by reference, or (B) any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case case, except insofar as such statements or omissions arise out of or the same are based upon (i) caused by any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such any Holder Indemnified Persons or its counsel Underwriter Indemnified Person expressly for use inclusion therein. In connection with an Underwritten Offering and without limiting any of the Company’s other obligations under this Agreement, the Company shall also provide customary indemnities to (i) such underwriters and their affiliates, officers, directors, employees, representatives and agents (collectively, the “Underwriter Indemnified Persons”) and (ii) each Person who controls (within the use meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) any Prospectussuch Underwriter Indemnified Person to the same extent as provided above with respect to the indemnification (and exceptions thereto) of the Holder Indemnified Person and the Person controlling such Holder Indemnified Persons, Free Writing Prospectus or “issuer information” after such time except insofar as the obligation of same are caused by any information furnished to the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired by any Holder Indemnified Persons or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedUnderwriter Indemnified Person expressly for inclusion therein.
(b) In connection with any Registration Statement filed pursuant to this Agreementin which a Holder of Registrable Shares is participating, each participating Holder holding will furnish to the Company in writing information regarding such Holder’s ownership of Registrable Securities Shares and its intended method of distribution thereof and, to be covered thereby agreesthe fullest extent permitted by law, shall, severally and not jointly with any other Holdersjointly, to indemnify (i) the Company and hold harmless its affiliates, directors, officers, employees, representatives and agents (collectively, the Company, “Company Indemnified Persons”) and (ii) each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, Person who controls the Company or such underwriter (within the meaning of Section 15 of the Securities Act or and Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, ) any such Company Indemnified Person against all Losses incurred caused by such party pursuant to (A) any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inin the Registration Statement, Prospectus or preliminary Prospectus or any amendment or supplement thereto, or any documents incorporated therein by reference, or (B) any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but but, in each case, only to the extent that any such untrue statement or omission is made in reliance on and in conformity with caused by any information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically Indemnified Person expressly for use inclusion therein; provided, however, that each Holder’s obligation to indemnify the Company hereunder shall, to the extent more than one Holder is subject to the same indemnification obligation, be apportioned between each Holder based upon the net amount received by each Holder from the sale of Registrable Shares, as compared to the total net amount received by all of the Holders holding Registrable Shares sold pursuant to such Registration Statement. Notwithstanding the foregoing, no Holder shall be required liable to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount for amounts in excess of the lesser of (x) such apportionment and (y) the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon holder in the sale of the Registrable Securities offering giving rise to such liability. In connection with an Underwritten Offering and without limiting any of the other obligations of the Holders under this Agreement, the Holders shall also provide customary indemnities to (i) such Underwriter Indemnified Persons and (ii) each Person who controls (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) any such Underwriter Indemnified Person to the same extent as provided above with respect to the indemnification obligation(and exceptions thereto) of the Company Indemnified Person and the Person controlling such Company Indemnified Persons.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such an indemnified party under Section 2.07(a) or Section 2.07(b) of any written notice of the commencement of any action, suit, action or proceeding or investigation or threat thereof made in writing for which indemnification under Section 2.07(a) or Section 2.07(b) may be requested, such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of notify the indemnifying party pursuant in writing of the commencement of such action or proceeding; but the omission so to this Section 12 except to the extent notify the indemnifying party shall not relieve it from any liability which it may have been actually and to any indemnified party in respect of such action or proceeding hereunder unless the indemnifying party was materially prejudiced as a result by such failure of the indemnified party to give such failurenotice, and in no event shall such omission relieve the indemnifying party from any other liability it may have to such indemnified party. In case any such action or proceeding shall be brought against any indemnified party and it shall notify the an indemnifying party of the commencement thereof, the such indemnifying party shall be entitled to participate therein and, to the extent that it shall so electdetermine, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the such indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case expenses subsequently incurred by such indemnified party, party in connection with the defense thereof other than reasonable costs of investigation; provided, unless in the reasonable judgment of any indemnified partyhowever, based on the opinion of counsel, a conflict of interest is likely to exist between that (i) if the indemnifying party and fails to take reasonable steps necessary to defend diligently the action or proceeding within 45 days after receiving notice from such indemnified party and that the indemnified party believes it has failed to do so; or (ii) if representation of both parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct, then, in any other such case, the indemnified party shall have the right to assume or continue its own defense as set forth above (but with no more than one firm of such counsel for all indemnified parties with respect to such claim, in which event each jurisdiction plus any necessary local counsel as determined by the indemnified party) and the indemnifying party shall not be liable for any expenses therefor (including, without limitation, any such reasonable counsel’s fees). If the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall claim, it will not be obligated to pay the fees and expenses of more than one counsel for all parties each indemnified by such indemnifying party with respect to such claim. The indemnifying party will not be subject to any liability for any settlement made without its consent, unless in not to be unreasonably withheld or delayed. No indemnifying party shall, without the reasonable judgment prior written consent of any the indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering compromise or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry enter into any settlement without agreement with respect to any action or proceeding in respect of which indemnification is sought under Section 2.07(a) or Section 2.07(b) (whether or not the indemnified party is an actual or potential party thereto), unless such compromise, consent or settlement is solely for monetary damages and includes an unconditional release of each indemnifying the indemnified party from all liability in respect of such claim or litigation, and does not include a statement or admission of fault, culpability or a failure to act, by or on behalf of the indemnified party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 recovery is unavailable not available or insufficient to hold harmless an indemnified party hereunder in respect of any LossesLosses under the foregoing indemnification provisions for any reason or reasons other than as specified therein, then any Person who would otherwise be entitled to indemnification by the indemnifying party, in lieu of indemnifying terms thereof shall nevertheless be entitled to contribution with respect to any Losses with respect to which such indemnified party, shall contribute Person would be entitled to the amount paid such indemnification but for such reason or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of reasons. In determining the amount of contribution to which the gross proceedsrespective Persons are entitled, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party there shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and considered the partiesPersons’ relative intentfault, knowledge, relative knowledge and access to information and concerning the matter with respect to which the claim was asserted, the opportunity to correct and prevent any statement or prevent omission and other equitable considerations appropriate under the circumstances. It is hereby agreed that it would not necessarily be equitable if the amount of such action. The amount paid contribution were determined by pro rata or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceedingper capita allocation. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not found guilty of such fraudulent misrepresentation. The parties agree Notwithstanding the foregoing, no Holder shall be required to make a contribution in excess of the net amount received by such holder from its sale of Registrable Shares in connection with the offering that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party gave rise to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)contribution obligation.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Registration Rights Agreement (Sandridge Energy Inc)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, its officers, directors, agents, trustees, stockholders and each Person, if any, Person who controls such Holder or such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directorsAct), trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees ' fees, disbursements and expenses, as incurred) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus or preliminary Prospectus, or any amendment or supplement to any of the foregoing, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, in the light of the circumstances then existing) not misleading, except in each case insofar as the same arise out of or are based upon (i) any such untrue statement or omission made in reliance on and in conformity with information with respect to such indemnified party furnished in writing to the Company by such indemnified party or its counsel expressly for use therein, (ii) the use of any amounts paid in Prospectus after such time as the obligation of the Company to keep such Prospectus effective has expired or (iii) the use of any settlement effected Prospectus after such time as the Company has advised the Holders that the filing of a post-effective amendment or supplement thereto is required, except such Prospectus as so amended or supplemented. In connection with an underwritten offering, the Company’s consentCompany shall indemnify the underwriters thereof, which consent their officers, directors, agents, trustees, stockholders and each Person who controls such underwriters (within the meaning of Section 14 of the Securities Act or Section 20 of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Holders of Registrable Securities. Notwithstanding the foregoing provisions of this Section 4.10(a), the Company shall not be unreasonably withheld liable to any Person who participates as an underwriter in the offering or delayedsale of Registrable Securities or any other Person, if any, who controls such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), under the indemnity agreement in this Section 4.10(a) for any such loss, claim, damage, liability (collectivelyor action or proceeding in respect thereof) or expense that arises out of any of the matters specified in clause (ii) or (iii) above or such Person's failure to send or deliver a copy of the final Prospectus to the Person asserting an untrue statement or alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of the Registrable Securities to such Person if such statement or omission wars corrected in such final Prospectus and the Company has previously furnished copies thereof to such Holder or other Person in accordance with this Agreement.
(b) In connection with any Registration Statement filed pursuant hereto, “Losses”each Holder of Registrable Securities to be covered thereby shall furnish to the Company in writing such information with respect to such Holder, including the name, address and the amount of Registrable Securities held by such Holder, as the Company reasonably requests for use in such Registration Statement or the related Prospectus and agrees, (i) in the case of Norberto Oscar Alvarez and Permitted Transferees that hold Shares ori▇▇▇▇▇▇▇ h▇▇▇ ▇▇ ▇▇▇, ▇ointly and severally with all other Holders that are Keytech Shareholders (and, otherwise, severally and not jointly with all other Holders), (ii) and in the case of all other Keytech Shareholders and Permitted Transferees that hold Shares originally held by them, severally and not jointly with all other Holders, to indemnify and hold harmless the Company, all other Holders or any underwriter, as the case may be, and their respective directors, officers, agents, trustees, stockholders and controlling Persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), against any losses, claims, damages, liabilities and expenses (including reasonable attorneys' fees, disbursements and expenses, as incurred), incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any such Registration Statement, Prospectus, Free Writing Statement Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing preliminary Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with to any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use inclusion therein; provided, however, that no the liability of each Holder hereunder shall be required limited to indemnify the Company proportion of any such loss, claim, damage, liability or expense that is equal to the proportion that the net proceeds from the sale of shares sold by such Holder under such registration statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in any other indemnified party under this Section 12(b) with respect event to any amount in excess exceed the net proceeds (after deduction of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, commissions and offering expenses payable by such Holder) received by such Holder upon from the sale of the Registrable Securities giving rise to covered by such indemnification obligationRegistration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 4.10 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, ; the indemnifying party shall not be liable to such indemnified party under these indemnification provisions for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, party a conflict of interest is likely to exist exist, based on the written opinion of counsel, between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding of Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Holders of Registrable Securities held by all Holders who are indemnified parties (which selection choice shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case Company in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claimclaims, unless in the reasonable judgment of any indemnified party, party based on the written opinion of counsel, counsel a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counselcounsel or counsels, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection choice shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case Company in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability the same is covered by the indemnity obligations set forth in this Section 124.10. No indemnified party shall consent to entry of any judgment or entry enter into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 4.10 is unavailable to an indemnified party hereunder in respect of to any Losseslosses, claims, damages, liabilities or expenses referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities and expenses, as well as any other relevant equitable considerations; provided, however, that no the liability of each Holder hereunder shall be required limited to contribute the proportion of any amount such loss, claim, damage, liability or expense that is equal to the proportion that the net proceeds from the sale of shares sold by such Holder under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder, but not in excess any event to exceed the net proceeds (after deduction of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, commissions and offering expenses payable by such Holder) received by such Holder upon from the sale of the Registrable Securities giving rise to covered by such contribution obligationRegistration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c4.10(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 124.10, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a4.10(a) or 12(b(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d4.10(d).
(e) The provisions of this Section 12 4.10 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Shareholders Agreement (At&t Corp)
Indemnification; Contribution. (a) The Company agrees hereby indemnifies and holds harmless, to indemnify and hold harmless each the fullest extent permitted by law, Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or and Section 20 of the Exchange Act and their respective directorsAct, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys’ fees under the Securities Act, common law and expensesotherwise), as incurred, and any amounts paid in any settlement effected with the Company’s consentjoint or several, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the registration statement contemplated hereby or in any prospectus, preliminary prospectus, free-writing prospectus, any amendment or supplement thereto or any document incorporated by reference relating thereto or in any filing made in connection with the registration or qualification of the offering under “blue sky” or other securities laws of jurisdictions in which the Registrable Securities are offered, or any omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and the Company shall reimburse Holder for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or proceeding, and (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus or free-writing prospectus, if used prior to the effective date of such registration statement or contained in the final prospectus (as amended or supplemented if the Company shall have filed with the Commission any amendment thereof or supplement thereto) if used within the period during which the Company is required to keep the registration statement to which such prospectus relates current, or the omission or alleged omission to state therein a material fact necessary in order to make the statements therein in light of the circumstances under which they were made, not misleading; provided, however, that such indemnification shall not extend to any such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses that are caused by any untrue statement or alleged untrue statement contained in, or by any omission or alleged omission from, information furnished in writing to the Company by such Holder in such capacity specifically and expressly for use in any such registration statement or prospectus.
(b) The Holder hereby indemnifies and hold harmless, to the fullest extent permitted by law, the Company, its officers, directors, employees, agents and each Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act, against any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses resulting from any untrue statement, or alleged untrue statement of a material fact, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Actstated, or necessary to make the statements therein (in the case of a Prospectusregistration statement or prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) any amendment thereof or supplement thereto, not misleading; provided, except however, that Holder shall be liable hereunder if and only to the extent that any such loss, claim, damage, liability (or proceeding in each case insofar as such statements respect thereof) or omissions arise expense arises out of or are is based upon (i) any such an untrue statement statement, or alleged untrue statement or omission or alleged omission omission, made in reliance on upon and in conformity with information with respect pertaining to such Holder which is requested by the Company and furnished in writing to the Company by such Holder or its counsel specifically and expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue registration statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationprospectus.
(c) Any Person entitled to seeking indemnification hereunder agrees to give prompt written notice to under the indemnifying party provisions of this Section 7 shall, promptly after the receipt by such indemnified party Person of any written notice of the commencement of any action, suit, proceeding claim or investigation or threat thereof made proceeding, notify in writing for which such indemnified each party may claim against whom indemnification or contribution pursuant is to this Agreementbe sought of the commencement thereof; provided, provided however, that the failure so to give such notification notify an indemnifying party shall not affect the obligations of relieve the indemnifying party pursuant to from any liability which it or he may have under this Section 12 7 (except to the extent that it has been prejudiced in any material respect by such failure) or from any liability which the indemnifying party shall have been actually and materially prejudiced as a result of such failuremay otherwise have. In case any such action shall be action, suit, claim or proceeding is brought against any indemnified party party, and it shall notify the notifies an indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying or he may elect by written notice delivered to the indemnified party similarly notifiedpromptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof, thereof with counsel reasonably satisfactory to such indemnified party. Notwithstanding the foregoing, the indemnified party shall have the right to employ its own counsel in any such case, but the fees and after notice from expenses of such counsel shall be at the expense of such indemnified party unless (i) the employment of such counsel shall have been authorized in writing by the indemnifying party in connection with the defense of such suit, action, claim or proceeding, (ii) the indemnifying party shall not have employed counsel (reasonably satisfactory to the indemnified party) to take charge of the defense of such action, suit, claim or proceeding within a reasonable time after notice of commencement of the action, suit, claim or proceeding, or (iii) such indemnified party shall have reasonably concluded, based on the advice of counsel, that there may be defenses available to it which are different from or additional to those available to the indemnifying party which, if the indemnifying party and the indemnified party were to be represented by the same counsel, would result in a conflict of interest for such counsel or materially prejudice the prosecution of the defenses available to such indemnified party. If any of the events specified in clauses (i), (ii) or (iii) of the preceding sentence shall have occurred or shall otherwise be applicable, then the fees and expenses of one counsel selected by a majority in interest of the indemnified parties shall be borne by the indemnifying party. If, in any case, the indemnified party of its election so to assume the defense thereofemploys separate counsel, the indemnifying party shall not be liable have the right to direct the defense of such indemnified party for any legal expenses action, suit, claim or proceeding on behalf of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party. Anything in this paragraph to the contrary notwithstanding, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment settlement of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, claim or proceeding or investigation, shall, except with effected without its prior written consent (which consent in the consent case of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, claim or proceeding exclusively seeking monetary relief shall not be unreasonably withheld or investigation to the extent such liability is covered by the indemnity obligations set forth delayed). Such indemnification shall remain in this Section 12. No indemnified party shall consent to entry full force and effect irrespective of any judgment investigation made by or entry into any settlement without the consent on behalf of each indemnifying an indemnified party.
(d) If the indemnification from the indemnifying party as provided for in this Section 12 7 is unavailable or is otherwise insufficient to hold harmless an indemnified party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which resulted in such Losseslosses, as well as any other relevant equitable considerations; providedclaims, howeverdamages, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationliabilities or expenses. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement (or alleged untrue untrue) statement of a material fact or omission (or alleged omission omission) to state a material fact, has been made bymade, or relates to information supplied by, by such indemnifying party or such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c)7(d) hereof, any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any such investigation or proceeding. The parties hereto acknowledge that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation or by any other method of allocation other than as described above. Notwithstanding the provisions of this Section 7(d), the Holder shall not be required to contribute any aggregate amount in excess of the amount by which the total price at which the Registrable Securities of such Holder were offered to the public exceed the amount of any damages which such Holder otherwise would have been required to pay or become liable to pay by reason of such untrue statement or omission unless such loss, claim, damage, liability (or proceeding in respect thereof) or expense arises out of or is based upon an untrue statement, or alleged untrue statement or omission or alleged omission, made in reliance upon and in conformity with information pertaining to Holder which is requested by the Company and furnished in writing to the Company by such Holder specifically and expressly for use in any such registration statement or prospectus. No Person person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If If, however, indemnification is available under this Section 127, the indemnifying parties shall indemnify each indemnified party to the full fullest extent provided in Section 12(aSections 7(a) or 12(b), as the case may be, through 7(d) hereof without regard to the relative fault of such said indemnifying parties party or indemnified party or any other equitable consideration provided for in this Section 12(d)consideration.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Warrant Registration Rights Agreement (Martha Stewart Living Omnimedia Inc)
Indemnification; Contribution. (a) The Company agrees to Amicus shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement(including the partners, each Personmembers, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partnersemployees, agents, employees representatives, officers and Affiliates directors of each Holder and its Affiliates) from and against any and all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular prepared by Amicus in connection with the Registration and/or offering of the Registrable Securities (as amended or supplemented if Amicus shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements the same are proximately caused by or omissions arise out of or are based upon (i) contained in any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel specifically and expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after inclusion in such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementeddocument.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agreesshall, severally and not jointly with any other Holdersjointly, to indemnify and hold harmless the CompanyAmicus, each Personand its respective directors, if anyofficers, who participates as an underwriter in any such offering and sale of Registrable Securities employees and each Person, if any, Person who controls the Company or such underwriter Amicus (within the meaning of Section 15 of the Securities Act or Section 20 of and the Exchange Act) from and against any and all losses, claims, damages, liabilities and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation expenses (including reasonable costs of investigation) arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular prepared by Amicus in connection with the Registration and/or offering of the Registrable Securities (as amended or supplemented if Amicus shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any if such untrue statement or omission is was made in reliance on upon and in conformity with any information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel specifically and expressly for use thereinin the preparation of such document; provided, however, that in no Holder event shall be required to indemnify the Company or any other indemnified party indemnity under this Section 12(b7.5(b) with respect to any be greater in amount in excess of than the aggregate dollar amount of the gross proceeds, after deducting any underwriting discounts and commissions, proceeds received by such Holder upon the sale of the such Registrable Securities giving rise pursuant to such indemnification obligationdocument.
(c) Any Each Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give prompt written notice to the indemnifying party (the “Indemnifying Party”) after the receipt by such indemnified party the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided, provided however, that the failure to give such notification so notify the Indemnifying Party shall not affect relieve the obligations Indemnifying Party of any liability that it may have to the indemnifying party pursuant to this Section 12 except Indemnified Party hereunder unless, and only to the extent that, the indemnifying party shall have been Indemnifying Party is actually and materially prejudiced as a result of by such failure. In case If notice of commencement of any such action shall be brought against any indemnified party and it shall notify is given to the indemnifying party of the commencement thereofIndemnifying Party as above provided, the indemnifying party Indemnifying Party shall be entitled to participate therein in and, to the extent that it shall so electmay wish, jointly with any other indemnifying party Indemnifying Party similarly notified, to assume the defense thereofof such action at its own expense, with counsel chosen by it and reasonably satisfactory to such indemnified party, Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and after notice from the indemnifying party to such indemnified party of its election so to assume participate in the defense thereof, but the indemnifying party shall not be liable to such indemnified party for any legal fees and expenses of other such counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof (other than reasonable costs of investigation, ) shall be paid by the Indemnified Party unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters Indemnified Party in an Underwritten Offering its reasonable judgment or (iii) the named parties to any such action (including any impleaded parties) have been advised by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (y) there may be one or more than one counsel for legal defenses available to it that are different from or additional to those available to the CompanyIndemnifying Party. In either of such cases in clause (iii) above, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is the Indemnifying Party shall not entitled to, or elects not to, have the right to assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based action on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other behalf of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsIndemnified Party. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, Indemnifying Party shall consent to the entry of any judgment or entry enter into any settlement which that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party each Indemnified Party of a an unconditional release from all liability in respect to such actionclaim or litigation, suitor that contains any admission of wrongdoing by or on behalf of any Indemnified Party, proceeding or investigation to without the extent prior written consent of such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party Indemnified Party, which consent shall not be unreasonably withheld; provided however, that an Indemnifying Party may consent to entry of any judgment or entry enter into any settlement that includes such a release and that does not contain such an admission without the consent of each indemnifying partysuch Indemnified Party. No Indemnifying Party shall be liable for any settlement entered into without its written consent (other than in the case where the Indemnifying Party is unconditionally released from liability and its rights are not adversely effected), which consent shall not be unreasonably withheld. Notwithstanding the foregoing, if at any time an Indemnified Party shall have requested that an Indemnifying Party reimburse the Indemnified Party for reasonable fees and expenses of counsel as contemplated by this paragraph, the Indemnifying Party shall be liable for any settlement of any proceeding effected without its written consent if (x) such settlement is entered into in good faith more than sixty (60) days after receipt by the Indemnifying Party of such request and more than thirty (30) days after receipt of the proposed terms of such settlement and (y) if such reimbursement was actually due under this Agreement, the Indemnifying Party shall not have reimbursed the Indemnified Party in accordance with such request prior to the date of such settlement.
(d) If the indemnification from the indemnifying party provided for in this Section 12 7.5 from the Indemnifying Party is unavailable to an indemnified party Indemnified Party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which that resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault faults of such indemnifying party Indemnifying Party and indemnified party Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(cSections 7.5(a), (b) and (c), any legal or other fees and fees, charges or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7.5(d) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of an intentional or fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentationPerson. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account Notwithstanding the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 Article 7, no Holder shall be required to contribute any amount greater in addition to any liability which any indemnifying party may have to any indemnified party and shall survive amount than the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments aggregate dollar amount of the amount thereof during proceeds received by such Holder upon the course sale of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurredsuch Registrable Securities pursuant to the applicable Registration Statement.
Appears in 1 contract
Sources: Securities Purchase Agreement (Amicus Therapeutics, Inc.)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each Holder Stockholder in any offering or sale of Registrable Securities Common Shares pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable SecuritiesCommon Shares, and each Person, if any, who controls such Holder Stockholder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon upon: (i) any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, ProspectusProspectus or preliminary Prospectus or any amendment or supplement to any of the foregoing, any Issuer Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a preliminary Prospectus, an Issuer Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (iA) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder Stockholder furnished in writing to the Company by such Holder Stockholder or its counsel expressly for use therein, (iiB) the use of any Prospectus, Issuer Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iiiC) the use of any Prospectus, Issuer Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders Stockholders that the filing of an amendment or supplement thereto is required, except such Prospectus, Issuer Free Writing Prospectus or “issuer information” as so amended or supplemented; or (ii) any violation by the Company of any other federal or state securities laws or regulations applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration. Notwithstanding the foregoing provisions of this Section 12(a), the Company shall not be liable to any such Stockholder or underwriter or to any other indemnified party under the indemnity agreement in this Section 12(a) for any Losses that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either: (i) (A) such Stockholder or underwriter failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Common Shares by such Stockholder or underwriter to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission; or (ii) (A) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (B) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented as required hereunder, such Stockholder or underwriter thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Common Shares by such Stockholder or underwriter to the Person asserting the claim from which such Losses arise. Such rights to indemnity and reimbursement of expenses shall survive the transfer of the Registrable Common Shares by such indemnified party.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder Stockholder holding Registrable Securities Common Shares to be covered thereby agreesshall, severally and not jointly with any other HoldersStockholders, to indemnify and hold harmless harmless, to the fullest extent permitted by law, the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities Common Shares and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliatesaffiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, ProspectusProspectus or preliminary Prospectus or any amendment or supplement to any of the foregoing, any Issuer Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a preliminary Prospectus or Issuer Free Writing Prospectus or “issuer information,” Prospectus, in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder Stockholder furnished in writing to the Company by such Holder Stockholder or its counsel specifically for use therein; provided, however, that no Holder Stockholder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale Stockholder from sales of the Registrable Securities giving rise to Common Shares of such indemnification obligationStockholder under such Registration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders Stockholders holding Registrable Securities Common Shares who are indemnified parties, selected by the Holders Stockholders holding a majority Majority of the Registrable Securities Common Shares held by all Holders Stockholders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders Stockholders holding Registrable Securities Common Shares who are indemnified parties, selected by the Holders Stockholders holding a majority Majority of the Registrable Securities Common Shares who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder Stockholder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale Stockholder from sales of the Registrable Securities giving rise to such contribution obligationCommon Shares of the Stockholder under the applicable Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Registration Rights Agreement (PAETEC Holding Corp.)
Indemnification; Contribution. (ai) The Company agrees to Infinity shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each Holder in any offering or sale holder (a "Participating Holder") of Registrable Securities registered pursuant to this AgreementSection 2(a) or Section 2(b) hereof, each Personits officers and directors, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Personperson, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual losses, claims, damages, liabilities (or threatened actionproceedings in respect thereof) and expenses (including the reasonable costs of investigation and reasonable attorneys' fees, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(ddisbursements and related charges) (under the Securities Act, or necessary to make the statements therein common law and otherwise) (in case of a Prospectuscollectively, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company"Claims"), (ii) more than one counsel for the underwriters in an Underwritten Offering joint or (iii) more than one counsel for the Companyseveral, in each case in connection with any one action which arise out of or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, are based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of upon (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact contained in any registration statement, prospectus, preliminary prospectus, any amendment or supplement thereto or any document incorporated by reference or in any filing made in connection with the registration or qualification of the offering under "blue sky" or other securities laws of jurisdictions in which the Participating Holder's Registrable Securities are offered (collectively, "Security Filings"), or any omission or alleged omission to state therein a material factfact required to be stated therein or necessary to make the statements therein not misleading, and (B) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, if used prior to the effective date of such registration statement (unless such statement is corrected in the final prospectus and Infinity has been made bypreviously furnished copies thereof to any Participating Holder seeking such indemnification and to the underwriters of the registration in question), or contained in the final prospectus (as amended or supplemented if Infinity shall have filed with the Commission any amendment thereof or supplement thereto) if used within the period during which Infinity is required to keep the registration statement to which such prospectus relates current, or the omission or alleged omission to information supplied bystate therein a material fact necessary in order to make the statements therein, such indemnifying party or indemnified partyin light of the circumstances under which they were made, not misleading; and Infinity shall, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.hereby agrees to,
Appears in 1 contract
Sources: Registration Rights Agreement (Outdoor Systems Inc)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementNational and its officers, each Persondirectors, if anyshareholders, who participates as an underwriter in any such offering and sale of Registrable Securitiesemployees, affiliates, agents and each Person, if any, person who controls such Holder or such underwriter National (and any of its affiliates) within the meaning of Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange Act of 1934, as amended (each an “Indemnified Person”), to the fullest extent lawful, against any and their respective directorsall claims, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities liabilities, and expenses (including reasonable attorneys’ all fees and expenses, as incurred, disbursements of counsel and any amounts paid other expenses reasonably incurred in any settlement effected connection with the Company’s consentinvestigation of, preparation for and defense of any pending or threatened claim, action, proceeding, inquiry, investigation or litigation, to which consent shall not be unreasonably withheld or delayedan Indemnified Person may become subject) (collectively, “LossesDamages”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions that arise out of or are based upon (i) related to National’s engagement under this Agreement. However, this indemnification shall not include any such untrue statement Damages that are found in a final judgment by a court of competent jurisdiction to have resulted from the bad faith, willful misconduct or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use gross negligence of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedNational.
(b) In connection with any Registration Statement filed pursuant If the indemnity above is unavailable or insufficient to hold harmless an Indemnified Person, then the Company shall contribute to amounts paid or payable by an Indemnified Person for Damages in such proportion as appropriately reflects the relative benefits received by the Company on the one hand and National on the other. If applicable law does not permit allocation solely on the basis of benefits, then such contribution shall be made in such proportion as appropriately reflects both the relative benefits and relative fault of the parties and other relevant equitable considerations. However, in no event shall National’s aggregate contributions for Damages exceed the amount of fees actually received by National under this Agreement, each Holder holding Registrable Securities . The relative benefits to the Company and National of this Agreement shall be deemed to be covered thereby agrees, severally and not jointly with any other Holders, in the same proportion that the total value paid or received or contemplated to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls be paid or received by the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (its security holders in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only connection with this Agreement bears to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect fees paid to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party National under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationAgreement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such indemnified party National of notice of any written notice of claim or the commencement of any action, suit, proceeding or investigation or threat thereof made in writing action for which an Indemnified Person may be entitled to indemnity, National shall promptly notify the Company of such indemnified party may claim indemnification or contribution pursuant the commencement of such against the Indemnified Person that would give rise to this Agreementindemnification. However, provided that any delay or failure to give such notification shall notify the Company will not affect relieve the obligations Company of the indemnifying party pursuant to this Section 12 its indemnity obligation except to the extent the indemnifying party shall have been actually and it is materially prejudiced as a result of by such delay or failure. In case any such action shall be brought against any indemnified party and it shall notify The Company may participate in the indemnifying party defense of the commencement thereof, claim and shall assume the indemnifying party defense of the claim and shall be entitled to participate therein and, to pay as incurred the extent that it shall so elect, jointly with fees and disbursements of counsel for the proceeding. In any other indemnifying party similarly notified, proceeding where the Company declines to assume the defense thereofor the Company’s counsel is deemed to have a conflict of interest, with the Indemnified Person shall have the right to retain its own counsel which shall be reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party National. The Company shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for pay the fees and expenses of (i) more than one such counsel for all Holders holding Registrable Securities who are indemnified partiesas incurred. However, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim Company shall not be obligated to pay responsible for the fees and expenses of more than one counsel (other than counsel of record) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyIndemnified Persons.
(d) If the indemnification from the indemnifying party provided The Company will not enter into any waiver, release or settlement for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Lossesthreatened or pending claim, then the indemnifying partyaction, in lieu of indemnifying such indemnified party, shall contribute to the amount paid proceeding or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall settle any related litigation for which indemnification may be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available sought under this Section 12, the indemnifying parties shall indemnify each indemnified Agreement (whether or not Indemnified Persons are a formal party to the full extent provided in Section 12(a) or 12(blitigation), as unless the case may bewaiver, without regard to the relative fault release or settlement includes an unconditional release of such indemnifying parties or indemnified party or each Indemnified Person from any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any and all liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments arising out of the amount thereof during the course of any threatened or pending claim, action, suitproceeding, proceeding investigation or investigation, as and when invoices are received or Losses are incurredlitigation.
Appears in 1 contract
Sources: Investment Banking Engagement Agreement (DelMar Pharmaceuticals, Inc.)
Indemnification; Contribution. (a) The Company agrees shall indemnify, to indemnify and hold harmless the fullest extent permitted by Applicable Law, each Holder in any offering or sale holder of Registrable Securities pursuant to this AgreementSecurities, each Personits officers, directors, partners, employees and agents, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directorsAct, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys’ fees and expensesunder the Securities Act or common law or otherwise), as incurredjoint or several, and resulting from any amounts paid in any settlement effected with violation by the Company’s consent, which consent shall not be unreasonably withheld Company of the provisions of the Securities Act or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained in, in any registration statement or prospectus (and as amended or supplemented if amended or supplemented) or any preliminary prospectus or caused by any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectusany prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading, except to the extent that such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses are caused by any untrue statement or alleged untrue statement contained in or by any omission or alleged omission from information concerning any holder of Registrable Securities furnished in writing to the Company by such holder expressly for use therein. If the Public Offering pursuant to any registration statement provided for under this Article III is made through underwriters, no action or failure to act on the part of such underwriters (whether or not such underwriter is an Affiliate of any holder of Registrable Securities) shall affect the obligations of the Company to indemnify any holder of Registrable Securities or any other Person pursuant to the preceding sentence. If the Public Offering pursuant to any registration statement provided for under this Article III is made through underwriters, the Company agrees to enter into an underwriting agreement in customary form with such underwriters and the Company agrees to indemnify such underwriters, their officers, directors, employees and agents, if any, and each case insofar Person, if any, who controls such underwriters within the meaning of Section 15 of the Securities Act to the same extent as such statements or omissions arise out herein before provided with respect to the indemnification of or are based upon (i) the holders of Registrable Securities; provided that the Company shall not be required to indemnify any such underwriter, or any officer, director or employee of such underwriter or any Person who controls such underwriter within the meaning of Section 15 of the Securities Act, to the extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is claimed results from such underwriter’s failure to send or give a copy of an amended or supplemented final prospectus to the Person asserting an untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect at or prior to the written confirmation of the sale of Registrable Securities to such Holder furnished Person if such statement or omission was corrected in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedsupplemented final prospectus prior to such written confirmation and the underwriter was provided with such amended or supplemented final prospectus.
(b) In connection with any Registration Statement filed pursuant to this Agreementregistration statement in which a holder of Registrable Securities is participating, each Holder holding Registrable Securities to be covered thereby agreessuch holder, severally and not jointly with any other Holdersjointly, shall indemnify, to indemnify and hold harmless the fullest extent permitted by Applicable Law, the Company, each Personunderwriter and their respective officers, directors, employees and agents, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages, liabilities (or proceedings in respect thereof) and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon expenses resulting from any untrue statement or alleged untrue statement of a material fact contained infact, or any omission or alleged omission of a material fact required to be stated in, in the registration statement or prospectus or preliminary prospectus or any Registration Statement, Prospectus, Free Writing Prospectus amendment thereof or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, supplement thereto or necessary to make the statements therein (in the case of a Prospectusany prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading, but only to the extent that any such untrue statement is contained in or such omission is made in reliance on and in conformity with from information with respect to such Holder so concerning a holder furnished in writing to the Company by such Holder or its counsel specifically holder expressly for use therein; provided, however, provided that no Holder such holder’s obligations hereunder shall be required limited to indemnify an amount equal to the Company or any other indemnified party under this Section 12(b) with respect net proceeds to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale holder of the Registrable Securities giving rise sold pursuant to such indemnification obligationregistration statement.
(c) Any Person entitled to indemnification hereunder agrees to under the provisions of this Section 3.7 shall (i) give prompt written notice to the indemnifying party after the receipt by of any claim with respect to which it seeks indemnification and (ii) unless in such indemnified party party’s reasonable judgment a conflict of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which interest between such indemnified party and indemnifying parties may claim indemnification or contribution pursuant to this Agreementexist in respect of such claim, provided that failure to give permit such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereofof such claim, with counsel reasonably satisfactory to such the indemnified party; and if such defense is so assumed, and after notice from the such indemnifying party to such shall not enter into any settlement without the consent of the indemnified party of its election so if such settlement attributes liability to assume the defense thereof, the indemnified party and such indemnifying party shall not be liable subject to such indemnified party any liability for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party settlement made without its consent (which shall not be unreasonably withheld); and any other of such indemnified parties underwriting agreement entered into with respect to such claim, in which any registration statement provided for under this Article III shall so provide. In the event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled toentitled, or elects not tonot, to assume the defense of a claim claim, such indemnifying party shall not be obligated to pay the fees and expenses of more than one counsel or firm of counsel for all parties indemnified by such indemnifying party with in respect to of such claim, unless in the reasonable judgment of any such indemnified party, based on the opinion of counsel, party a conflict of interest is likely to may exist between an such indemnified party and any other of such indemnified parties with in respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If for any reason the indemnification from the indemnifying party provided for in this Section 12 foregoing indemnity is unavailable to an indemnified party hereunder in respect of any Lossesunavailable, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such the indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other or (ii) if the allocation provided by clause (i) above is not permitted by Applicable Law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, in such proportion as is appropriate to reflect not only the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other but also the relative fault of the indemnifying party and the indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided. Notwithstanding the foregoing, however, that no Holder holder of Registrable Securities shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise holder would have been required to such contribution obligation. The relative fault of such indemnifying party and pay to an indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and if the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in indemnity under Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding3.7(b) was available. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution obligation of any Person to contribute pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does 3.7 shall be several and not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)joint.
(e) The An indemnifying party shall make payments of all amounts required to be made pursuant to the foregoing provisions of this Section 12 shall be in addition 3.7 to any liability which any indemnifying party may have to any or for the account of the indemnified party and shall survive the termination from time to time promptly upon receipt of this Agreementbills or invoices relating thereto or when otherwise due or payable.
(f) The indemnification indemnity and contribution required by agreements contained in this Section 12 3.7 shall be remain in full force and effect regardless of any investigation made by periodic payments or on behalf of a participating holder of Registrable Securities, its officers, directors, agents or any Person, if any, who controls such holder as aforesaid, and shall survive the amount thereof during Transfer of Equity Securities by such holder and the course termination of this Agreement for any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurredreason.
Appears in 1 contract
Sources: Stockholders Agreement (Eye Care Centers of America Inc)
Indemnification; Contribution. (a) The Company agrees to If any Registrable Securities are included in a registration statement under this Agreement:
7.1. To the extent permitted by applicable law, each of the Trust and the Corporation, severally and not jointly, shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementSelling Holder, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Selling Holder or such underwriter within the meaning of Section 15 the Securities Act, each Person who participates as a sales or placement agent or underwriter in any offering of the Registered Securities Act or Section 20 and each officer, director, partner and employee of the Exchange Act such Selling Holder and their respective directorssuch controlling Person, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses (joint or several), including reasonable attorneys’ ' fees and expensesdisbursements and reasonable expenses of investigation, incurred by such party or to which such party may become subject pursuant to any actual or threatened action, suit, proceeding or investigation, or to which any of the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as incurredsuch losses, claims, damages, liabilities and expenses arise out of or are based upon any of the following statements, omissions or violations (collectively a "Violation"):
(i) Any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary Prospectus or final Prospectus
(ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; provided, however, that the indemnification required by this Section 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected with by the Company’s consent, indemnified person without the consent of the Trust or the Corporation (which consent shall not be unreasonably withheld withheld), nor shall the Trust or delayed) the Corporation be liable in any such case for any such loss, claim, damage, liability or expense to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with information furnished to the Trust or the Corporation by the indemnified party expressly for use in connection with such registration; and provided further that the indemnity agreement contained in this Section 7 shall not apply to the extent that any such loss is based on or arises out of an untrue statement or alleged untrue statement of a material fact, contained in or omitted from any preliminary Prospectus if the final Prospectus shall correct such untrue statement or alleged untrue statement, or such omission or alleged omission, and a copy of the final Prospectus has not been sent or given to such person at or prior to the confirmation of sale to such person if an underwriter, placement agent or Selling Holder was under an obligation to deliver such final Prospectus and failed to do so.
7.2. To the extent permitted by applicable law, each Selling Holder shall indemnify and hold harmless the Trust, the Corporation, each of the Trustees of the Trust, each of the directors of the Corporation, each of the officers of the Trust or the Corporation who shall have signed the registration statement, each Person, if any, who controls the Trust or the Corporation within the meaning of the Securities Act, any other Selling Holder, any controlling Person of any such other Selling Holder and each officer, director, partner, and employee of such other Selling Holder and such controlling Person, against any and all losses, claims, damages, liabilities and expenses (collectivelyjoint and several), “Losses”) including reasonable attorneys' fees and disbursements and reasonable expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained ininvestigation, or to which any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or necessary to make the statements therein (in the case of a Prospectusother federal or state laws, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case but only insofar as such statements or omissions losses, claims, damages, liabilities and expenses arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made Violation, in reliance on and in conformity with information with respect to such Holder furnished in writing each case to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleadingextent that, but only to the extent that any that, such untrue statement Violation arises out of or omission is based upon and was made in reliance on and in conformity with upon information with respect to such Holder furnished in writing to the Company by such Selling Holder or its counsel specifically expressly for use thereinin connection with such registration; provided, however, that no Holder shall be required to indemnify (x) the Company or any other indemnification
7.3. Promptly after receipt by an indemnified party under this Section 12(b) with respect to any amount in excess 7 of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim indemnification or contribution pursuant under this Section 7, such indemnified party shall deliver to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant a written notice thereof and the indemnifying party shall have the right to this Section 12 except participate in, and, to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electdesires, jointly with any other indemnifying party similarly notifiednoticed, to assume the defense thereof, thereof with nationally recognized counsel experienced in such matters reasonably satisfactory to such the indemnified party; provided, however, that an indemnified party shall have the right to retain its own counsel and after notice from to not have the indemnifying party assume its defense, with the fees, disbursements and expenses to be paid by the indemnifying party, if representation of such indemnified party of its election so to assume by the defense thereof, counsel retained by the indemnifying party shall not would be liable inappropriate due to such indemnified party for any legal expenses of other counsel actual or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist potential differing interests between the indemnifying party and such indemnified party and any other of party represented by such indemnified parties with respect counsel in such proceeding. The failure to such claim, in which event deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 to the extent of such prejudice but shall not be liable for relieve the indemnifying party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 7. Any fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected incurred by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties party (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case including any fees and expenses incurred in connection with any one investigating or preparing to defend such action or separate but similar or related actions. An proceeding) shall be paid to the indemnified party, as incurred, within thirty (30) days of written notice thereof to the indemnifying party who (regardless of whether it is ultimately determined that an indemnified party is not entitled toto indemnification hereunder). Any such indemnified party shall have the right to employ separate counsel in any such action, claim or elects not to, assume proceeding and to participate in the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claimthereof, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay but the fees and expenses of such additional counsel, provided that counsel shall be the expenses of such indemnified party unless (i) the indemnifying party shall not be liable for the has agreed to pay such fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (Cii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsindemnifying
7.4. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification required by this Section 7 from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losseslosses, then the claims, damages, liabilities or expenses referred to in this Section 7:
(i) The indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, Violation has been made committed by, or relates to information supplied by, such indemnifying party or indemnified partyparties, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such actionViolation. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in
(ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7.4 were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in Section 12(c7.4(i), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d).
7.5. If indemnification is available under this Section 127, the indemnifying parties shall indemnify each indemnified party to the full extent provided in this Section 12(a) or 12(b), as the case may be, 7 without regard to the relative fault of such indemnifying parties party or indemnified party or any other equitable consideration provided referred to in Section 7.4 except that no Selling Holder shall be liable for any amount in excess of the net proceeds it receives in the offering which is the subject of the indemnification proceeding.
7.6. The obligations of the Trust and the Corporation under this Section 12(d).
(e) The provisions of this Section 12 7 shall be in addition to any liability which any indemnifying party the Trust and the Corporation may otherwise have to the persons specified in Section 7.1 and the obligations of the Selling Holders under this Section 7 shall be in addition to any liability which such Persons may otherwise have to the Trust and the Corporation. The remedies provided in this Section 7 are not exclusive and shall not limit any rights or remedies which may otherwise be available to an indemnified party at law or in equity.
7.7. The obligations of the Trust, the Corporation and the Selling Holders of Registrable Securities under this Section 7 shall survive the termination completion of any offering of Registrable Securities pursuant to a registration statement under this Agreement, and otherwise.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Registration Rights Agreement (Starwood Hotel & Resorts Worldwide Inc)
Indemnification; Contribution. (a) The Company Developer agrees to indemnify and hold harmless each Holder in the Issuer and the Underwriter, any offering director, officer, employee or sale controlling person of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder the Issuer or such underwriter the Underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of (collectively, the Exchange Act “Indemnified Parties”), against any and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and or expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred whatsoever caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue statements or alleged untrue misleading statement or allegedly misleading statement of a material fact contained in, in the Limited Offering Memorandum or caused by any omission or alleged omission from the Limited Offering Memorandum of a any material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary in order to make the statements therein (in the case of a Prospectusmade therein, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) under which they were made, not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) ; provided that the Developer shall have no indemnification obligation with respect to any such untrue statement or alleged untrue statement or omission in the information contained in the Limited Offering Memorandum under the headings “INTRODUCTION – The Issuer,” NO LITIGATION – The Issuer, and “UNDERWRITING.” In case any action shall be brought against one or alleged omission made in reliance on more of the Indemnified Parties based upon the Limited Offering Memorandum and in conformity with information with respect to such Holder furnished of which indemnity may be sought against the Developer, the Indemnified Parties shall promptly notify the Developer in writing and the Developer shall promptly assume the defense thereof, including the employment of counsel, the payment of all expenses and the right to negotiate and consent to settlement. Any one or more of the Company Indemnified Parties shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Indemnified Parties unless employment of such counsel has been specifically authorized by such Holder or its counsel expressly the Developer. The Developer shall not be liable for use therein, (ii) the use any settlement of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation action effected without its consent by any of the Company to keep effective Indemnified Parties, but if settled with the Registration Statement consent of which the Developer or if there be a final judgment for the plaintiff in any such Prospectus forms a part has expired action against the Developer or (iii) any of the use Indemnified Parties, with or without the consent of any Prospectusthe Developer, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, Developer agrees to indemnify and hold harmless the CompanyIndemnified Parties to the extent provided herein. If a claim for indemnification under this Section is determined to be unenforceable by a final judgment of a court of competent jurisdiction, each Personthen the Developer shall contribute to the aggregate losses, if anyclaims, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls damages or liabilities to which the Company Underwriter or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, its officers, partnersdirectors, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to controlling persons may be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses subject in such proportion amount as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, benefits received by such Holder upon the sale of Developer, on the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified partyone hand, and the parties’ Underwriter, on the other, and the relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result faults of the Losses referred to above shall be deemed to include, subject to Developer and the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceedingperson seeking contribution. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments delivery of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred2022 Bonds hereunder.
Appears in 1 contract
Sources: Bond Purchase Agreement
Indemnification; Contribution. (a) The Company agrees Trust hereby indemnifies, to indemnify and hold harmless the fullest extent permitted by law, each Holder in any offering or sale of Registrable Securities pursuant to this Agreementincluded in any registration statement filed by the Trust and the directors, officers, partners, employees, agents and each PersonPerson who controls any Holder within the meaning of the Securities Act and the Exchange Act, if any, who participates as an underwriter against all losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (under the Securities Act, common law and otherwise), joint or several, which arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any such registration statement or in any prospectus, preliminary prospectus, any amendment or supplement thereto or any document incorporated by reference relating thereto or in any filing made in connection with the registration or qualification of the offering under "blue sky" or other securities laws of jurisdictions in which the Registrable Securities are offered, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and sale the Trust shall reimburse such Holders for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or proceeding, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, if used prior to the effective date of such registration statement (unless such statement is corrected in the final prospectus and the Trust has previously furnished copies thereof to any holder of Registrable Securities seeking such indemnification and to the underwriters of the registration in question), or contained in the final prospectus (as amended or supplemented if the Trust shall have filed with the Commission any amendment thereof or supplement thereto) if used within the period during which the Trust is required to keep the registration statement to which such prospectus relates current, or the omission or alleged omission to state therein a material fact necessary in order to make the statements therein in light of the circumstances under which they were made, not misleading; provided, however, that such indemnification shall not extend to any such losses, claims, damages, liabilities (or proceedings in respect thereof) or expenses that are caused by any untrue statement or alleged untrue statement contained in, or by any omission or alleged omission from, information furnished in writing to the Trust by such Holder in such capacity specifically and expressly for use in any such registration statement or prospectus.
(b) In the case of an underwritten offering pursuant to Section 3 hereof in which the registration statement covers Registrable Securities, the Trust shall enter into an underwriting agreement in customary form and substance with such underwriters and, if so requested, a contribution agreement in customary form and substance with such underwriters and shall indemnify the underwriters, their officers and directors, if any, and each Personperson, if any, who controls such Holder underwriters within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act, to the same extent as provided in the preceding paragraph with respect to the indemnification of the Holders of Registrable Securities and to the same extent as then customary in underwriting agreements of such underwriter; provided, however, that the Trust shall not be required to indemnify any such underwriter, or any officer or director of such underwriter or any person who controls such underwriter within the meaning of Section 15 of the Securities Act or and Section 20 of the Exchange Act, to the extent that the loss, claim, damage, liability (or proceedings in respect thereof) or expense for which indemnification is sought results from such underwriter's failure to deliver or otherwise provide a copy of the final prospectus to the Person asserting an untrue statement or omission or alleged untrue statement or omission at or prior to the written confirmation of the sale of securities to such Person, if such statement or omission was in fact corrected in such final prospectus.
(c) In connection with any registration statement with respect to which a Holder of Registrable Securities is participating, each such Holder shall furnish to the Trust in writing such information regarding such Holder included in a registration statement and the intended method of distribution as shall be reasonably requested by the Trust for use in any such registration statement or prospectus and each of the Holders hereby indemnifies, severally but not jointly, to the fullest extent permitted by law, the Trust, its officers and directors and each person, if any, who controls the Trust within the meaning of Section 15 of the Securities Act and their respective directorsSection 20 of the Exchange Act, trustees, officers, partners, agents, employees and Affiliates against all any losses, claims, damages, liabilities (or proceedings in respect thereof) and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon resulting from any untrue statement or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectusregistration statement or prospectus, a Free Writing Prospectus or “issuer information,” in the light any amendment thereof or supplement thereto, not misleading; provided, however, that each of the circumstances then existingHolders shall be liable hereunder if and only to the extent that any such loss, claim, damage, liability (or proceeding in respect thereof) not misleading, except in each case insofar as such statements or omissions arise expense arises out of or are is based upon (i) any such an untrue statement statement, or alleged untrue statement or omission or alleged omission omission, made in reliance on upon and in conformity with information with respect pertaining to such Holder which is requested by the Trust and furnished in writing to the Company Trust by such Holder or its counsel specifically and expressly for use therein, (ii) the use of in any Prospectus, Free Writing Prospectus such registration statement or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedprospectus.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(cd) Any Person entitled to seeking indemnification hereunder agrees to give prompt written notice to under the indemnifying party provisions of this Section 8 shall, promptly after the receipt by such indemnified party Person of any written notice of the commencement of any action, suit, proceeding claim or investigation or threat thereof made proceeding, notify each party against whom indemnification is to be sought in writing for which such indemnified of the commencement thereof; provided, however, that the failure so to notify an indemnifying party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of relieve the indemnifying party pursuant to from any liability which it or he may have under this Section 12 8 (except to the extent that it has been prejudiced in any material respect by such failure) or from any liability which the indemnifying party shall have been actually and materially prejudiced as a result of such failuremay otherwise have. In case any such action shall be action, suit, claim or proceeding is brought against any indemnified party party, and it shall notify the notifies an indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying or he may elect by written notice delivered to the indemnified party similarly notifiedpromptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof, thereof with counsel reasonably satisfactory to such indemnified party. Notwithstanding the foregoing, the indemnified party shall have the right to employ its or his own counsel in any such case, but the fees and after notice from expenses of such counsel shall be at the expense of such indemnified party unless (i) the employment of such counsel shall have been authorized in writing by the indemnifying party in connection with the defense of such suit, action, claim or proceeding, (ii) the indemnifying party shall not have employed counsel (reasonably satisfactory to the indemnified party) to take charge of the defense of such action, suit, claim or proceeding within a reasonable time after notice of commencement of the action, suit, claim or proceeding, or (iii) such indemnified party shall have reasonably concluded, based on the advice of counsel, that there may be defenses available to it which are different from or additional to those available to the indemnifying party which, if the indemnifying party and the indemnified party were to be represented by the same counsel, could result in a conflict of interest for such counsel or materially prejudice the prosecution of the defenses available to such indemnified party. If any of the events specified in clauses (ii) or (iii) of the preceding sentence shall have occurred or shall otherwise be applicable, then the fees and expenses of one counsel or firm of counsel selected by a majority in interest of the indemnified parties shall be borne by the indemnifying party. If, in any case, the indemnified party of its election so to assume the defense thereofemploys separate counsel, the indemnifying party shall not be liable have the right to direct the defense of such indemnified party for any legal expenses action, suit, claim or proceeding on behalf of other counsel or any other expenses, in each case subsequently incurred by such the indemnified party. Anything in this paragraph to the contrary notwithstanding, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the an indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment settlement of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, claim or proceeding or investigation, shall, except with effected without its prior written consent (which consent in the consent case of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, claim or proceeding exclusively seeking monetary relief shall not be unreasonably withheld or investigation to the extent such liability is covered by the indemnity obligations set forth delayed). Such indemnification shall remain in this Section 12. No indemnified party shall consent to entry full force and effect irrespective of any judgment investigation made by or entry into any settlement without the consent on behalf of each indemnifying an indemnified party.
(de) If the indemnification from the indemnifying party as provided for in this Section 12 8 is unavailable or is otherwise insufficient to hold harmless an indemnified party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which resulted in such Losseslosses, as well as any other relevant equitable considerations; providedclaims, howeverdamages, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationliabilities or expenses. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement (or alleged untrue untrue) statement of a material fact or omission (or alleged omission omission) to state a material fact, has been made bymade, or relates to information supplied by, by such indemnifying party or such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c)8(e) hereof, any legal or other fees and or expenses reasonably incurred by such indemnified party in connection with any such investigation or proceeding. The parties hereto acknowledge that it would not be just and equitable if contribution pursuant to this Section 8 were determined by pro rata allocation or by any other method of allocation other than as described above. No Person person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If If, however, indemnification is available under this Section 128, the indemnifying parties shall indemnify each indemnified party to the full fullest extent provided in Section 12(aSections 8(a) or 12(b), as the case may be, through 8(e) hereof without regard to the relative fault of such said indemnifying parties party or indemnified party or any other equitable consideration provided for in this Section 12(d)consideration.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Registration Rights Agreement (Pennsylvania Real Estate Investment Trust)
Indemnification; Contribution. (a) The Company agrees to Amicus shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within (including the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partnersemployees, agents, employees representatives, officers and Affiliates directors of GSK and its Affiliates) (each a “GSK Indemnitee”) from and against any and all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular prepared by Amicus in connection with the registration and/or offering of the Registrable Securities (as amended or supplemented if Amicus shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements the same are caused by or omissions arise out of or are based upon (i) contained in any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after in such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementeddocument.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to shall indemnify and hold harmless the CompanyAmicus, each Personand its respective directors, if anyofficers, who participates as an underwriter in any such offering and sale of Registrable Securities employees and each Person, if any, Person who controls the Company or such underwriter Amicus (within the meaning of Section 15 of the Securities Act or Section 20 of and the Exchange Act) from and against any and all losses, claims, damages, liabilities and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation expenses (including reasonable costs of investigation) arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular prepared by Amicus in connection with the registration and/or offering of the Registrable Securities (as amended or supplemented if Amicus shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any if such untrue statement or omission is was made in reliance on upon and in conformity with any information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify in the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess preparation of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationdocument.
(c) Any Each Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give prompt written notice to the indemnifying party (the “Indemnifying Party”) after the receipt by such indemnified party the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may the Indemnified Party intends ****** - Material has been omitted and filed separately with the Commission. to claim indemnification or contribution pursuant to this Agreement; provided, provided however, that the failure to give such notification so notify the Indemnifying Party shall not affect relieve the obligations Indemnifying Party of any liability that it may have to the indemnifying party pursuant to this Section 12 except Indemnified Party hereunder unless, and only to the extent that, such failure results in the indemnifying party shall have been actually and materially prejudiced as a result Indemnifying Party’s forfeiture of such failuresubstantive rights or defenses. In case If notice of commencement of any such action shall be brought against any indemnified party and it shall notify is given to the indemnifying party of the commencement thereofIndemnifying Party as above provided, the indemnifying party Indemnifying Party shall be entitled to participate therein in and, to the extent that it shall so electmay wish, jointly with any other indemnifying party Indemnifying Party similarly notified, to assume the defense thereofof such action at its own expense, with counsel chosen by it and reasonably satisfactory to such indemnified party, Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and after notice from the indemnifying party to such indemnified party of its election so to assume participate in the defense thereof, but the indemnifying party shall not be liable to such indemnified party for any legal fees and expenses of other such counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof (other than reasonable costs of investigation, ) shall be paid by the Indemnified Party unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters Indemnified Party in an Underwritten Offering its reasonable judgment or (iii) the named parties to any such action (including any impleaded parties) have been advised by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (y) there may be one or more than one counsel for legal defenses available to it which are different from or additional to those available to the CompanyIndemnifying Party. In either of such cases, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is the Indemnifying Party shall not entitled to, or elects not to, have the right to assume the defense of a claim such action on behalf of such Indemnified Party. No Indemnifying Party shall be liable for any settlement entered into without its written consent (other than in the case where the Indemnifying Party is unconditionally released from liability and its rights are not adversely effected), which consent shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyunreasonably withheld.
(d) If the indemnification from the indemnifying party provided for in this Section 12 7.5 from the Indemnifying Party pursuant to applicable law is unavailable to an indemnified party Indemnified Party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault faults of such indemnifying party Indemnifying Party and indemnified party Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledgeKnowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(cSections 7.5(a), (b) and (c), any legal or other fees and fees, charges or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7.5(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentationPerson. The parties agree that it would not be just ****** - Material has been omitted and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account filed separately with the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Commission.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The In the case of each offering of Registrable Shares made pursuant to this Article III, the Company agrees shall, to the extent permitted by applicable law, indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering the Shareholder and sale of Registrable Securities, its directors and officers and each Person, if any, who that controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Shareholder from and against any and all losses, claims, damages or liabilities, actions or proceedings (whether commenced or threatened) in respect thereof and their respective directorsexpenses (including reasonable and documented fees of counsel) (collectively, trustees“Claims”) to which each such indemnified party may become subject, officers, partners, agents, employees and Affiliates, against all Losses incurred by insofar as such party pursuant to Claims (including any actual or threatened action, suit, proceeding or investigation arising amounts paid in settlement reached in accordance with the requirements for consent as provided herein) arise out of or are based upon any (i) an untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement, or any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, (ii) any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a any preliminary or final Prospectus (including any Free Writing Prospectus or “issuer information,” incorporated into such Registration Statement), in the light of the circumstances then existingunder which they were made) not misleadingmisleading or (iii) any violation by the Company of the Securities Act, but only the Exchange Act or any state securities law in connection with such offering; provided, however, that the Company shall not be liable to any such indemnified party in any such case to the extent that any such Claims arise out of or are based upon an untrue statement or alleged untrue statement contained in or omission is made or alleged omission from such Registration Statement, or preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), or amendment or supplement thereto, in reliance on upon and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder the Shareholder or its counsel specifically any Representative of the Shareholder expressly for use therein; provided, howeverfurther, that no Holder shall be required to indemnify that the Company or any other indemnified party under this Section 12(b) foregoing indemnity agreement, with respect to any amount in excess Prospectus or Free Writing Prospectus, shall not inure to the benefit of any such indemnified party if the Person asserting any Claims against such indemnified party purchased Shareholder Shares and (x) prior to the time of sale of the Shareholder Shares to such Person (the “Time of Sale”), the Company shall have notified the Shareholder that the Prospectus or Free Writing Prospectus (as it existed prior to the Time of Sale) contains an untrue statement of material fact or omits to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (y) such untrue statement or omission of a material fact was corrected in a Prospectus or Free Writing Prospectus, and such corrected Prospectus or Free Writing Prospectus was provided to the Shareholder in advance of the Time of Sale, and (z) such corrected preliminary Prospectus or Free Writing Prospectus was not conveyed to such Person at or prior to the Time of Sale. In connection with any underwritten offering of Registrable Shares made pursuant to this Article III, the Company shall indemnify and hold harmless each underwriter, the officers and directors of such underwriter and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such underwriter to substantially the same extent as provided above with respect to the indemnification of the Shareholder by the Company.
(b) In the case of each offering of Registrable Shares made pursuant to this Article III, the Shareholder shall, to the extent permitted by applicable law, indemnify and hold harmless the Company and its directors and officers and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company from and against any Claims to which each such indemnified party may become subject, insofar as such Claims (including any amounts paid in settlement reached in accordance with the requirements for consent as provided herein) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any Registration Statement, or any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement) contained therein, or any amendment or supplement thereto, or any document incorporated by reference therein, or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any preliminary or final Prospectus (including any Free Writing Prospectus incorporated into such Registration Statement), in the light of the circumstances under which they were made) not misleading, in each case only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with information furnished in writing to the Company by the Shareholder or any Representative of the Shareholder expressly for use therein. The liability of the Shareholder under the foregoing provisions of this Section 3.8(b) shall be limited to an amount equal to the dollar amount of the gross proceeds, after deducting any underwriting discounts and commissions, net proceeds received by such Selling Holder upon from Shareholder Shares sold by such Selling Holder pursuant to such Registration Statement or Prospectus. In connection with any underwritten offering of Registrable Shares made pursuant to this Article III, the sale Company shall indemnify and hold harmless each underwriter, the officers and directors of such underwriter and each Person, if any, that controls (within the meaning of Section 15 of the Registrable Securities giving rise Act or Section 20 of the Exchange Act) such underwriter and any other selling securityholder in such offering (and, in the case of each such other selling securityholder, such selling securityholder’s officers and directors and each Person, if any, that controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such selling securityholder), to such substantially the same extent as provided above with respect to the indemnification obligationof the Company by the Shareholder.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of If, for any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereofreason, the indemnifying party shall be entitled indemnification provisions contemplated by Section 3.8(a) or Section 3.8(b) are unavailable to participate therein and, or are insufficient to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between hold harmless an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any LossesClaims referred to therein other than by the terms of this Section 3.8, then the indemnifying party, in lieu of indemnifying such indemnified party, each Indemnifying Party shall contribute to the amount paid or payable by such indemnified party as a result of such Losses Claims in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party, on the one hand, and the indemnified party in connection party, on the other hand, with the actions which respect to statements or omissions that that resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationClaims. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, by such indemnifying party Indemnifying Party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. If, however, the allocation in the first sentence of this Section 3.8(c) is not permitted by applicable law, then each Indemnifying Party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults, but also the relative benefits of the Indemnifying Party and the indemnified party, as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 3.8(c) were to be determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the preceding sentences of this Section 3.8(c). The amount paid or payable by a an indemnified party as a result of the Losses Claims referred to above shall be deemed to include, include (subject to the limitations set forth in Section 12(c), 3.9) any reasonable and documented legal or other fees and or out-of-pocket expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation such action, proceeding or proceedingclaim. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would Notwithstanding the foregoing, the Shareholder shall not be just and equitable if contribution liable to contribute any amount in excess of the dollar amount of the net proceeds received by the Shareholder from Shareholder Shares sold by the Shareholder pursuant to this Section 12(d) were determined by pro rata allocation such Registration Statement or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Prospectus.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Combination Agreement (CF Industries Holdings, Inc.)
Indemnification; Contribution. (a) The Company agrees to ViroPharma shall indemnify and hold harmless each Holder in (including the employees, officers and directors of Aventis) from and against any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular (as amended or supplemented if ViroPharma shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements the same are caused by or omissions arise out of or are based upon (i) contained in any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to concerning such Holder furnished in writing to the Company ViroPharma by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after in such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedStatement.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to shall indemnify and hold harmless the CompanyViroPharma, each Person, if any, who participates as an any underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, retained by ViroPharma and their respective directors, trustees, officers, partners, agents, employees and Affiliateseach Person who controls ViroPharma or such underwriter (within the meaning of the Securities Act and the Exchange Act) from and against any and all losses, against all Losses incurred by such party pursuant to any actual or threatened actionclaims, suitdamages, proceeding or investigation liabilities and expenses (including reasonable costs of investigation) arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular (as amended or supplemented if ViroPharma shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any if such untrue statement or omission is was made in reliance on upon and in conformity with any information with respect to concerning such Holder furnished in writing to the Company ViroPharma by such Holder or its counsel specifically for use thereinin the preparation of such Registration Statement or prospectus; provided, however, that no the total amount to be indemnified by such -------- ------- Holder pursuant to this Section 7.5(b) shall be required limited to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, net proceeds received by such Holder upon the sale of Holders in the Registrable Securities giving rise offering to such indemnification obligationwhich the Registration Statement or prospectus relates.
(c) Any Each Person entitled to indemnification hereunder (the "Indemnified Party") agrees to give prompt written notice to the indemnifying party (the "Indemnifying Party") after the receipt by such indemnified party the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided, provided however, that the failure to give such notification so notify the Indemnifying Party shall -------- ------- not affect relieve the obligations Indemnifying Party of any liability that it may have to the indemnifying party pursuant to this Section 12 except Indemnified Party hereunder unless, and only to the extent that, such failure results in the indemnifying party shall have been actually and materially prejudiced as a result Indemnifying Party's forfeiture of such failuresubstantive rights or defenses. In case If notice of commencement of any such action shall be brought against any indemnified party and it shall notify is given to the indemnifying party of the commencement thereofIndemnifying Party as above provided, the indemnifying party Indemnifying Party shall be entitled to participate therein in and, to the extent that it shall so electmay wish, jointly with any other indemnifying party Indemnifying Party similarly notified, to assume the defense thereofof such action at its own expense, with counsel chosen by it and reasonably satisfactory to such indemnified party, Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and after notice from the indemnifying party to such indemnified party of its election so to assume participate in the defense thereof, but the indemnifying party shall not be liable to such indemnified party for any legal fees and expenses of other such counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof (other than reasonable costs of investigation, ) shall be paid by the Indemnified Party unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters Indemnified Party in an Underwritten Offering its reasonable judgment or (iii) the named parties to any such action (including any impleaded parties) have been advised by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (y) there may be one or more than one counsel for legal defenses available to it which are different from or additional to those available to the CompanyIndemnifying Party. In either of such cases, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is the Indemnifying Party shall not entitled to, or elects not to, have the right to assume the defense of a claim such action on behalf of such Indemnified Party. No Indemnifying Party shall be liable for any settlement entered into without its written consent (other than in the case where the Indemnifying Party is unconditionally released from liability and its rights are not adversely effected), which consent shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyunreasonably withheld.
(d) If the indemnification from the indemnifying party provided for in this Section 12 7.5 from the Indemnifying Party pursuant to applicable law is unavailable to an indemnified party Indemnified Party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault faults of such indemnifying party Indemnifying Party and indemnified party Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(cSections 7.5(a), (b) and (c), any legal or other fees and fees, charges or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7.5(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Person.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to indemnify Secured Parties shall jointly and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the CompanyAdministrative Agent, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective its directors, trustees, officers, shareholders, members, partners, agents, employees and Affiliatesagents (and any other persons with a functionally equivalent role of a person holding such titles notwithstanding a lack of such title or any other title) (individually, an “Indemnified Party”; collectively, “Indemnified Parties”), from and against any and all Losses liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements (including reasonable legal fees) of any kind or nature whatsoever (“Loss”) which may be imposed on, incurred by such party pursuant or asserted against the Indemnified Party in performing the Administrative Agent’s duties hereunder or under the Agreement or any other Transaction Document or in any way relating to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company Agreement or any other indemnified party Transaction Document. The Secured Parties shall reimburse the Administrative Agent for any Loss as incurred but in any event within ten (10) business days of the delivery by the Administrative Agent to the Secured Parties of a written notice setting forth the nature and amount of any such Loss. If the indemnification under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 6 is unavailable to an indemnified party hereunder in respect of Indemnified Party or insufficient to hold an Indemnified Party harmless for any LossesLoss, then the indemnifying party, in lieu of indemnifying such indemnified party, each Secured Party shall contribute to the amount paid or payable by such indemnified party as a result Indemnified Party in proportion to the Secured Parties’ initially purchased respective stated value of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationSeries B Preferred Stock. The relative fault of such indemnifying party indemnity and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to agreements contained in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be are in addition to any other liability which any indemnifying party that the Secured Parties may have to the Indemnified Parties under the Agreement or otherwise. Prior to taking any indemnified party action hereunder or under the Agreement as Administrative Agent, the Administrative Agent may require each Secured Party to deposit with it sufficient sums as it determines in good faith is necessary to protect the Administrative Agent for costs and expenses associated with taking such action and the Administrative Agent may delay taking any such action until such time as it shall have received such sums and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of have no liability hereunder to any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.party for any such delay..
Appears in 1 contract
Sources: Security Agreement (Global Diversified Industries Inc)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each Holder in any offering or sale holder (a "Participating Holder") of Registrable Securities registered pursuant to this AgreementSection 2(a) or Section 2(b) hereof, each Personits officers and directors, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Personperson, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual losses, claims, damages, liabilities (or threatened actionproceedings in respect thereof) and expenses (including the reasonable costs of investigation and reasonable attorneys' fees, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(ddisbursements and related charges) (under the Securities Act, or necessary to make the statements therein Canadian Securities Acts, common law and otherwise) (in case of a Prospectuscollectively, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company"Claims"), (ii) more than one counsel for the underwriters in an Underwritten Offering joint or (iii) more than one counsel for the Companyseveral, in each case in connection with any one action which arise out of or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, are based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of upon (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact contained in any registration statement, prospectus, preliminary prospectus, any amendment or supplement thereto or any document incorporated by reference or in any filing made in connection with the registration or qualification of the offering under "blue sky" or other securities laws of jurisdictions in which the Participating Holder's Registrable Securities are offered (collectively, "Security Filings"), or any omission or alleged omission to state therein a material factfact required to be stated therein or necessary to make the statements therein not misleading, and (B) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, if used prior to the effective date of such registration statement (unless such statement is corrected in the final prospectus and the Company has been made bypreviously furnished copies thereof to any Participating Holder seeking such indemnification and to the underwriters of the registration in question), or contained in the final prospectus (as amended or supplemented if the Company shall have filed with the Commission any amendment thereof or supplement thereto) if used within the period during which the Company is required to keep the registration statement to which such prospectus relates current, or the omission or alleged omission to information supplied bystate therein a material fact necessary in order to make the statements therein, such indemnifying party or indemnified partyin light of the circumstances under which they were made, not misleading; and the Company shall, and the parties’ relative intentit hereby agrees to, knowledge, access to information and opportunity to correct or prevent reimburse such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), holders for any legal or other fees and expenses reasonably incurred by such indemnified party them in connection with investigating or defending any investigation such claim or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) ; provided, however, that such indemnification shall be entitled not extend to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined Claims which are caused by pro rata allocation any untrue statement or alleged untrue statement contained in, or by any other method of allocation that does not take into account the consideration referred to omission or alleged omission from, information furnished in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party writing to the full extent provided Company by any Qualified Holder expressly for use in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of any such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Security Filing.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementNMC and its officers, each Persondirectors, if anyshareholders, who participates as an underwriter in any such offering and sale of Registrable Securitiesemployees, affiliates, agents and each Person, if any, person who controls such Holder or such underwriter NMC (and any of its affiliates) within the meaning of Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange Act and their respective directorsof 1934, trusteesas amended (each an “Indemnified Person”), officersto the fullest extent lawful, partners, agents, employees and Affiliates against all claims, losses, claims, damages, liabilities liabilities, and expenses (including reasonable attorneys’ Including all fees and expenses, as incurred, disbursements of counsel and any amounts paid other expenses reasonably Incurred in any settlement effected connection with the Company’s consentinvestigation of, preparation for and defense of any pending or threatened claim, action, proceeding, inquiry, investigation or litigation, to which consent shall not be unreasonably withheld or delayedan Indemnified Person may become subject) (collectively, “LossesDamages”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions that arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant related to any actual or threatened actionproposed Corporate Advisory assignment or NMC ‘s engagement under this Agreement. However, suitthis indemnification shall not include any Damages that are found in a final judgment by a court of competent jurisdiction to have resulted from the bad faith, proceeding willful misconduct or investigation arising out gross negligence of NMC.
b) If the indemnity above is unavailable or insufficient to hold harmless an Indemnified Person, then the Company shall contribute to amounts paid or payable by an Indemnified Person for Damages in such proportion as appropriately reflects the relative benefits received by the Company on the one hand and NMC on the other. If applicable law does not permit allocation solely based upon any untrue or alleged untrue statement of a material fact contained inon benefits, or any omission or alleged omission of a material fact required to then such contribution shall be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under made in such proportion as appropriately reflects both the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light relative benefits and relative faults of the circumstances then existing) not misleadingparties and other relevant equitable considerations. However, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically no event shall NMC ‘s aggregate contributions for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of Damages exceed the amount of the gross proceeds, after deducting any underwriting discounts and commissions, fees received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationNMC under this Agreement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such indemnified party NMC of notice of any written notice of claim or the commencement of any action, suit, proceeding or investigation or threat thereof made in writing action for which an Indemnified Person may be Entitled to indemnity, NMC shall promptly notify the Company of such indemnified party may claim indemnification or contribution pursuant the commencement of such against the Indemnified Person that would give rise to this Agreementindemnification. However, provided that any delay or failure to give such notification shall notify the Company will not affect relieve the obligations Company of the indemnifying party pursuant to this Section 12 its indemnity obligation except to the extent the indemnifying party shall have been actually and it is materially prejudiced as a result of by such delay or failure. In case any such action shall be brought against any indemnified party and it shall notify The Company may participate in the indemnifying party defense of the commencement thereof, claim and shall assume the indemnifying party defense of the claim and shall be entitled to participate therein and, to pay as incurred the extent that it shall so elect, jointly with fees and disbursements of counsel for the proceeding. In any other indemnifying party similarly notified, proceeding where the Company declines to assume the defense thereofor the Company’s counsel is deemed to have a conflict of interest, with the Indemnified Person shall have the right to retain its own counsel which shall be reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party NMC. The Company shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for pay the fees and expenses of (i) more than one such counsel for all Holders holding Registrable Securities who are indemnified partiesas Incurred. However, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim Company shall not be obligated to pay responsible for the fees and expenses of more than one counsel (other than counsel of record) for all parties indemnified by such indemnifying party with respect to such Indemnified Persons.
d) The Company will not enter into any waiver, release or settlement for any threatened or pending claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of or settle any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the related litigation for which indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall may be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available sought under this Section 12, the indemnifying parties shall indemnify each indemnified Agreement (whether or not Indemnified Persons are a formal party to the full extent provided in Section 12(a) or 12(blitigation), as unless the case may bewaiver, without regard to the relative fault release or settlement includes an unconditional release of such indemnifying parties or indemnified party or each Indemnified Person from any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any and all liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments arising out of the amount thereof during the course of any threatened or pending claim, action, suitproceeding, proceeding investigation or investigation, as and when invoices are received or Losses are incurredlitigation.
Appears in 1 contract
Sources: Engagement Agreement (Endless Corp)
Indemnification; Contribution. (aA) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreementthe Dealer Manager, their respective affiliates, each PersonHolder, if any, each Participating Broker-Dealer and each Person who participates as an underwriter in (any such offering and sale of Registrable Securities, Person being an “Underwriter”) and each Person, if any, who controls such Holder any Dealer Manager, Holder, Participating Broker-Dealer or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors(collectively, trusteesthe “Section 4 Persons”), officers, partners, agents, employees and Affiliates against all any losses, claims, damages, liabilities and or expenses (including the reasonable attorneys’ cost of investigating and defending against any claims therefore and reasonable and documented counsel fees incurred in connection therewith as such expenses are incurred), joint or several, which may be based upon either the Securities Act, or the Exchange Act, or any other statute or at common law, on the ground or alleged ground that (i) any Registration Statement (or any amendment or supplement thereto) pursuant to which Exchange Securities or Registrable Securities were registered under the Securities Act includes or allegedly includes an untrue statement of material fact or omits to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading, or (ii) any Prospectus included therein (or any amendment or supplement thereto) includes or allegedly includes an untrue statement of material fact or omits to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading, in the light of the circumstances under which they were made, in each case, unless such statement or omission was made in reliance upon, and in conformity with, written information furnished to the Company by any such Section 4 Person specifically for use in the preparation thereof; provided that in no case is the Company to be liable with respect to any claims made against any Section 4 Person unless such Section 4 Person shall have notified the Company in writing within a reasonable time after the summons or other first legal process giving information of the nature of the claim shall have been served upon such Section 4 Person, but failure to notify the Company of any such claim shall not relieve the Company from liability under this paragraph unless and to the extent the Company did not otherwise learn of such claim and such failure results in the forfeiture by the Company of substantial rights and defenses. The Company will be entitled to participate at its own expense in the defense, or, if it so elects, to assume the defense of any suit brought to enforce any such liability, but, if the Company elects to assume the defense, such defense shall be conducted by counsel chosen by it; provided, however, that such counsel shall be reasonably satisfactory to such Section 4 Persons. In the event that the Company elects to assume the defense of any such suit and retains such counsel, each Section 4 Person may retain additional counsel but shall bear the fees and expensesexpenses of such counsel unless (i) the Company shall have specifically authorized the retaining of such counsel or (ii) the parties to such suit include the Section 4 Person and the Section 4 Persons and the Company have been advised by such counsel that one or more legal defenses may be available to it or them which may not be available to the Company, as incurredin which case the Company shall not be entitled to assume the defense of such suit on behalf of such Section 4 Person, notwithstanding its obligation to bear the reasonable fees and expenses of such counsel, it being understood, however, that the Company shall not, in connection with any amounts paid one such suit or proceeding or separate but substantially similar or related actions or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (and not more than one local counsel) at any time for all such Section 4 Persons, which firm shall be designated in writing by the Dealer Manager. The Company shall not be liable to indemnify any Person for any settlement of any such claim effected with without the Company’s prior written consent, which consent shall not be unreasonably withheld withheld. The Company shall not, without the prior written consent of the Section 4 Person, effect any settlement, compromise or delayed) (collectively, “Losses”) incurred by such party pursuant consent to the entry of judgment in any actual pending or threatened action, suitsuit or proceeding in respect of which any Section 4 Person is or could have been a party and indemnity was or could have been sought hereunder by such Section 4 Person, unless such settlement, compromise or consent (x) includes an unconditional release of such Section 4 Person from all liability on claims that are the subject matter of such action, suit or proceeding and (y) does not include a statement as to or investigation arising out an admission of fault, culpability or based upon failure to act by or on behalf of any untrue or alleged untrue statement of a material fact contained inSection 4 Person. This indemnity agreement will be in addition to any liability, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to which the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedmight otherwise have.
(bB) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, Each Section 4 Person agrees severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Personof the Company’s directors, if any, each of the Company’s officers who participates as an underwriter in any such offering and sale of Registrable Securities have signed the Registration Statement and each Personperson, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages, liabilities or expenses (including the reasonable cost of investigating and their respective directorsdefending against any claims therefor and reasonable and documented counsel fees incurred in connection therewith as such expenses are incurred), trusteesjoint or several, officerswhich may be based upon the Securities Act, partnersor any other statute or at common law, agents, employees and Affiliates, against all Losses incurred by such party on the ground or alleged ground that (i) any Registration Statement (or any amendment or supplement thereto) pursuant to any actual which Exchange Securities or threatened action, suit, proceeding Registrable Securities were registered under the Securities Act includes or investigation arising out of or based upon any untrue or alleged allegedly includes an untrue statement of a material fact contained in, or any omission or alleged omission of omits to state a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary in order to make the statements therein not misleading or (ii) any Prospectus included therein (or any amendment or supplement thereto) includes or allegedly includes an untrue statement of material fact or omits to state a material fact required to be stated therein or necessary in case of a Prospectus, a Free Writing Prospectus or “issuer information,” order to make the statements therein not misleading in the light of the circumstances then existing) not misleadingunder which they were made, but but, in each case, only to the extent that insofar as any such untrue statement or omission is was made in reliance on upon, and in conformity with with, written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel Section 4 Person specifically for use thereinin the preparation thereof; provided, however, provided that in no Holder shall case is such Section 4 Person to be required liable with respect to indemnify any claims made against the Company or any such director, officer or controlling person unless the Company or any such director, officer or controlling person shall have notified such Section 4 Person in writing within a reasonable time after the summons or other indemnified party first legal process giving information of the nature of the claim shall have been served upon the Company or any such director, officer or controlling person, but failure to notify such Section 4 Person of any such claim shall not relieve such Section 4 Person from liability under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts paragraph unless and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result such Section 4 Person did not otherwise learn of such failureaction and such failure results in the forfeiture by such Section 4 Person of substantial rights and defenses. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall Such Section 4 Person will be entitled to participate therein andat its own expense in the defense, to the extent that or, if it shall so elect, jointly with any other indemnifying party similarly notifiedelects, to assume the defense thereofof any suit brought to enforce any such liability, with but, if such Section 4 Person elects to assume the defense, such defense shall be conducted by counsel reasonably satisfactory to chosen by it. In the event that such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so Section 4 Person elects to assume the defense thereofof any such suit and retain such counsel, the indemnifying party shall not be liable to Company or such indemnified party for any legal expenses of other counsel director, officer or any other expensescontrolling person, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless defendant or defendants in the reasonable judgment of any indemnified partysuit, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party may retain additional counsel but shall not be liable for bear the fees and expenses of such counsel unless (i) more than one such Section 4 Person shall have specifically authorized the retaining of such counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), or (ii) the parties to such suit include the Company or any such director, officer or controlling person and such Section 4 Person and the Company or such director, officer or controlling person have been advised by such counsel that one or more than one counsel for the underwriters in an Underwritten Offering legal defenses may be available to it or (iii) more than one counsel for the Companythem which may not be available to such Section 4 Person, in each which case such Section 4 Person shall not be entitled to assume the defense of such suit on behalf of the Company or such director, officer or controlling person, notwithstanding its obligation to bear the reasonable fees and expenses of such counsel, it being understood, however, that such Section 4 Person shall not, in connection with any one action such suit or proceeding or separate but substantially similar or related actions. An indemnifying party who is not entitled toactions or proceedings in the same jurisdiction arising out of the same general allegations or circumstances, or elects not to, assume be liable for the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one counsel a separate firm of attorneys (and not more than one local counsel) at any time for all parties indemnified by such indemnifying party with respect to such claim, unless in of the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party Company and any other of such indemnified parties with respect to such claimdirector, in officer or controlling person, which event the indemnifying party firm shall be obligated to pay designated in writing by the fees and expenses of such additional counsel, provided that the indemnifying party Company. Such Section 4 Person shall not be liable to indemnify any person for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense settlement of any such actionclaim effected without such Section 4 Person’s prior written consent, suit, proceeding or investigation, shall, except with the which consent of each indemnified party, consent shall not be unreasonably withheld. This indemnity agreement will be in addition to the entry of any judgment or entry into any settlement liability which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party4 Person might otherwise have.
(dC) If the indemnification from the indemnifying party provided for in this Section 12 4 is unavailable or insufficient to hold harmless an indemnified party hereunder in respect of any Lossesunder subsections (A) or (B) above, then the each indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such indemnified party as a result of such Losses the losses, claims, damages or liabilities referred to in subsection (A) or (B) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Section 4 Persons on the other from the offering of the New Notes or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party Company on the one hand and indemnified party the Section 4 Person on the other in connection with the actions statements or omissions which resulted in such Losseslosses, claims, damages or liabilities as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault benefits of such indemnifying party and indemnified party shall be determined by reference to the relative benefits received by the Company from the initial offering and sale of the New Notes, on the one hand, and by a holder from receiving Registrable Securities or Exchange Securities registered under the Securities Act, on the other. The relative fault of the parties shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such indemnifying party by the Company or indemnified party, the Section 4 Persons and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionuntrue or alleged untrue statement or omission. The amount paid or payable by a an indemnified party as a result of the Losses losses, claims, damages or liabilities referred to above in the first sentence of this subsection (C) shall be deemed to include, subject to the limitations set forth in Section 12(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation action or proceedingclaim which is the subject of this subsection (C). Notwithstanding the provisions of this Section 4(C), no Section 4 Person shall be required to contribute any amount in excess of the amount by which the dollar amount of the proceeds received by such Section 4 Person from the sale of any Registrable Securities (after deducting any fees, discounts and commissions applicable thereto) exceeds the amount of any damages which such Section 4 Person has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, and no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities underwritten by it and distributed to the public exceeds the amount of any damages which such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to 4 Persons’ obligations in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party subsection (C) to contribute are several in proportion to the full extent provided in Section 12(a) principal amount of Registrable Securities registered or 12(b)underwritten, as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)by them and not joint.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees In connection with any registration of Registrable Securities or Underwritten Offering pursuant to indemnify Section 2.01, Section 2.02 or Section 2.03, Invesco will indemnify, defend and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementShareholder, each Personits Affiliates, if any, who participates as an underwriter in any such offering its and sale of Registrable Securities, their Representatives and each Person, if any, Person who controls such Holder or such underwriter Shareholders within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Indemnified Persons”) from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expensesLosses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising that arise out of or are based upon any untrue statement, or alleged untrue statement statement, of a material fact contained inor incorporated by reference in any part of any Registration Statement or any Prospectus, including any amendment or supplement thereto, used in connection with the Registrable Securities, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading; provided, except in each case insofar as however, that Invesco will not be required to indemnify any Indemnified Person for any such statements or omissions arise Loss arising out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing sales pursuant to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such or Prospectus forms a part has expired or based upon Shareholder Information (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementeddefined below).
(b) In connection with any Registration Statement filed or Prospectus, the Shareholders who sell Registrable Securities pursuant to this Agreementsuch Registration Statement or Prospectus will severally, each Holder holding Registrable Securities to be covered thereby agreesbut not jointly, severally and not jointly with any other Holdersindemnify, to indemnify defend and hold harmless the CompanyInvesco, each Person, if any, who participates as an underwriter in any such offering its Affiliates and sale of Registrable Securities its and their Representatives and each Person, if any, who controls the Company or such underwriter Invesco (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant ) to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required the same extent as the foregoing indemnity from Invesco to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleadingShareholders, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder information furnished in writing by such Shareholder or on such Shareholder’s behalf (in each case, in its capacity as a Shareholder), in either case expressly for use in any Registration Statement or any Prospectus, including any amendment or supplement thereto (“Shareholder Information”); provided that the total obligations of a Shareholder under this Agreement (including arising under Section 2.11(d), herein) will be limited to an amount equal to the Company net proceeds actually received by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, Shareholder (after deducting any underwriting discounts and commissions, received by such Holder upon ) from the sale disposition of the Registrable Securities giving rise pursuant to such indemnification obligationRegistration Statement or Prospectus.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person in respect of which indemnity may be sought pursuant to Section 2.11 (a) or Section 2.11(b), such action shall be brought against any indemnified party and it shall Person (the “Indemnified Party”) will promptly notify the indemnifying party of Person against whom such indemnity may be sought (the commencement thereof, “Indemnifying Party”) in writing and the indemnifying party Indemnifying Party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notifiedwish, to assume the defense thereof, thereof with counsel reasonably satisfactory to the Indemnified Party and will pay the fees and disbursements of such indemnified party, and after notice from the indemnifying party counsel related to such indemnified party proceeding; provided, however, that the failure or delay to give such notice shall not relieve the Indemnifying Party of its election so obligations pursuant to assume this Agreement except to the defense thereof, the indemnifying party extent that it shall not be liable to determined by a court of competent jurisdiction that such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred Indemnifying Party has been prejudiced by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of failure or delay. In any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, action or proceeding, the Indemnified Party shall have the right, but not the obligation, to participate in which event the indemnifying party shall not be liable for any such defense and to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such Indemnified Party unless (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of Indemnifying Party and the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory Indemnified Party have mutually agreed to the Company)retention of such counsel, (ii) more than one counsel for the underwriters in an Underwritten Offering Indemnifying Party fails to assume the defense of the claim, action or proceeding within thirty (30) days following receipt of notice from the Indemnified Party or (iii) the Indemnified Party and the Indemnifying Party are both actual or potential defendants in, or targets of, any such action and the Indemnified Party has been advised by counsel that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicting interests between them or that there may be one or more than one counsel for legal defenses available to such Indemnified Party which are not available to the CompanyIndemnifying Party. It is understood that the Indemnifying Party will not, in each case in connection with any one claim, action or separate but similar proceeding or related actions. An indemnifying party who is not entitled toclaims, actions or elects not toproceedings in the same jurisdiction, assume be liable for the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one counsel (1) separate firm of attorneys (in addition to local counsel) at any time for all parties indemnified by such indemnifying party with respect to Indemnified Parties and that all such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses will be reimbursed as they are incurred. In the case of the retention of any such additional counselseparate firm for the Indemnified Parties, such firm will be designated in writing by the Indemnified Parties (provided that in the indemnifying party shall not case of the holders of Registrable Securities, such firm will be liable for the fees and expenses designated by holders of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties sold under the applicable Registration Statement). The Indemnifying Party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which selection consent shall not be reasonably satisfactory to the Companyunreasonably withheld, conditioned or delayed), (B) more than one counsel but if such claim, action or proceeding is settled with such consent or if there has been a final judgment for the underwriters in an Underwritten Offering plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and against any Loss by reason of such settlement or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsjudgment. No indemnifying partyIndemnifying Party will, in defense of any such action, suit, proceeding or investigation, shall, except with without the prior written consent of each indemnified partythe Indemnified Party, consent settle, compromise or offer to the entry settle or compromise any pending or threatened proceeding in respect of which any judgment or entry into any Indemnified Party is seeking indemnity hereunder, unless such settlement which does not include as includes (i) an unconditional term thereof the giving by the claimant or plaintiff to release of such indemnified party of a release Indemnified Party from all liability in respect to connection with such actionproceeding, suit, proceeding (ii) no finding or investigation to admission of any violation of Law or any violation of the extent such liability is covered rights of any Person by the indemnity obligations set forth Indemnified Party or any of its Affiliates can be made as the result of such action and (iii) the sole relief (if any) provided is monetary damages that are reimbursed in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without full by the consent of each indemnifying partyIndemnifying Party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 2.11 from the Indemnifying Party is unavailable to an indemnified party Indemnified Party hereunder or is insufficient in respect of any LossesLosses referred to in this Section 2.11 that would not have been excluded by Sections 2.11(a) or 2.11(b), then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall will contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which that resulted in such Losses, as well as any other relevant equitable considerations; provided, howeveror (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of Invesco, on the one hand, and such Shareholder, on the other, in connection with the statements or omissions that no Holder shall be required to contribute resulted in such Losses, as well as any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationother relevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall Indemnified Party will be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made taken by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of the Losses referred to above shall will be deemed to include, subject to the limitations set forth in Section 12(c2.11(c), any reasonable legal or other out of pocket fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within The Shareholders’ obligations to contribute pursuant to this Section 2.11(d), if any, are several in proportion to the meaning of Section 11(f) net amount that the proceeds of the Securities Actoffering actually received by such Shareholder bears to the total proceeds of the offering received by all holders of Registrable Securities, and not joint.
(e) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d2.11(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration equitable considerations referred to in this Section 12(d2.11(d). If indemnification is available under this No Person guilty of “fraudulent misrepresentation” (within the meaning of Section 12, 11(f) of the indemnifying parties shall indemnify each indemnified party Securities Act) will be entitled to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault contribution from any Person who was not guilty of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)fraudulent misrepresentation.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Shareholder Agreement (Invesco Ltd.)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in In connection with any offering or sale registration of Registrable Securities pursuant to this AgreementSection 2.01 or Section 2.02, the Company will indemnify, defend, hold harmless and reimburse each PersonStockholder, if anyits Affiliates, who participates as an underwriter in any such offering directors, officers, shareholders, employees, advisors and sale of Registrable Securities, representatives and each Person, if any, Person who controls such Holder or such underwriter Stockholders within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Indemnified Persons”) from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses liabilities, costs (including costs of preparation and reasonable attorneys’ fees and any legal or other fees or expenses incurred by such party in connection with any investigation or proceeding), expenses, as incurredjudgments, fines, penalties, charges and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inor incorporated by reference in any part of any Registration Statement or any Prospectus, including any amendment or supplement thereto, used in connection with the Registrable Securities, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i. The reimbursements required by this Section 2.09(a) any such untrue statement or alleged untrue statement or omission or alleged omission will be made in reliance on and in conformity with information with respect to such Holder furnished in writing to by periodic payments during the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation course of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired investigation or (iii) the use of any Prospectusdefense, Free Writing Prospectus as and when bills are received or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedexpenses incurred.
(b) In connection with any Registration Statement filed or Prospectus, the Stockholders who sell Registrable Securities pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, such Registration Statement or Prospectus will severally and but not jointly with any other Holdersindemnify, to indemnify defend and hold harmless the Company, each Personits directors, if anyits officers, who participates as an underwriter in any such offering and sale of Registrable Securities its employees and each Person, if any, who controls the Company or such underwriter (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from the Company to the Stockholders, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant but only with respect to any actual or threatened action, suit, proceeding or investigation information arising out of or based upon any untrue information furnished by such Stockholder or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein on such Stockholder’s behalf (in each case, in its capacity as a Stockholder), in either case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use thereinin any Registration Statement or any Prospectus, including any amendment or supplement thereto; provided, however, that no Holder such Stockholder shall not be required liable in any such case to indemnify the extent that prior to the filing of any such Registration Statement or Prospectus or amendment thereof or supplement thereto, such Stockholder has furnished to the Company in writing information expressly for use in such Registration Statement or Prospectus or any other indemnified party under this Section 12(b) with respect amendment thereof or supplement thereto which corrected or made not misleading information previously furnished to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationCompany.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person in respect of which indemnity may be sought pursuant to Section 2.09(a) or Section 2.09(b), such action shall be brought against any indemnified party and it shall Person (the “Indemnified Party”) will promptly notify the indemnifying party of Person against whom such indemnity may be sought (the commencement thereof, “Indemnifying Party”) in writing and the indemnifying party Indemnifying Party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notifiedwish, to assume the defense thereof, thereof with counsel reasonably satisfactory to the Indemnified Party and will pay the fees and disbursements of such indemnified party, and after notice from the indemnifying party counsel related to such indemnified party proceeding; provided, however, that the failure or delay to give such notice shall not relieve the Indemnifying Party of its election so obligations pursuant to assume this Agreement except to the defense thereof, the indemnifying party extent that it shall not be liable to determined by a court of competent jurisdiction that such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred Indemnifying Party has been prejudiced by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of failure or delay. In any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, action or proceeding, the Indemnified Party shall have the right, but not the obligation, to participate in which event the indemnifying party shall not be liable for any such defense and to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such Indemnified Party unless (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of Indemnifying Party and the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory Indemnified Party have mutually agreed to the Company)retention of such counsel, (ii) more than one counsel for the underwriters in an Underwritten Offering Indemnifying Party fails to assume the defense of the claim, action or proceeding within fifteen (15) Business Days following receipt of notice from the Indemnified Party or (iii) more than one the Indemnified Party and the Indemnifying Party are both actual or potential defendants in, or targets of, any such action and the Indemnified Party has been advised by counsel for that representation of both parties by the Companysame counsel would be inappropriate due to actual or potential conflicting interests between them. It is understood that the Indemnifying Party will not, in each case in connection with any one claim, action or separate but similar proceeding or related actions. An indemnifying party who is not entitled toclaims, actions or elects not toproceedings in the same jurisdiction, assume be liable for the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one counsel (1) separate firm of attorneys (in addition to any local counsel) at any time for all parties indemnified by such indemnifying party with respect to Indemnified Parties and that all such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses will be reimbursed as they are incurred. In the case of the retention of any such additional counselseparate firm for the Indemnified Parties, provided that such firm will be designated in writing by the indemnifying party shall Indemnified Parties. The Indemnifying Party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final judgment for the fees plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and expenses against any Loss by reason of such settlement or judgment. No Indemnifying Party will, without the prior written consent of the Indemnified Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder, unless such settlement includes (A) more than one counsel for an unconditional release of such Indemnified Party from all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company)liability in connection with such proceeding, (B) more than one counsel for no finding or admission of any violation of law or any violation of the underwriters in an Underwritten Offering rights of any Person by the Indemnified Party or any of its Affiliates can be made as the result of such action and (C) more than one counsel for the Company, sole relief (if any) provided is monetary damages that are reimbursed in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving full by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyIndemnifying Party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 2.09 from the Indemnifying Party is unavailable to an indemnified party Indemnified Party hereunder or is insufficient in respect of any LossesLosses referred to in this Section 2.09, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall will contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which that resulted in such Losses, as well as any other relevant equitable considerations; provided, howeveror (ii) if the allocation provided by clause (i) is not permitted by applicable law, that no Holder shall be required in such proportion as is appropriate to contribute any amount reflect not only the relative fault referred to in excess clause (i), but also the relative benefit of the amount of Company, on the gross proceedsone hand, after deducting and such Stockholder, on the other hand, in connection with the statements or omissions that resulted in such Losses, as well as any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationother relevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall Indemnified Party will be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made taken by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of the Losses referred to above shall will be deemed to include, subject to the limitations set forth in Section 12(c2.09(c), any reasonable legal or other out-of-pocket fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation .
(within the meaning of Section 11(fe) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d2.09(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration equitable considerations referred to in this Section 12(d2.09(d). If No Person guilty of “fraudulent misrepresentation” (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. In no event shall any Stockholder be obligated to provide indemnification is available under this Section 12, or contribution in excess of the indemnifying parties shall indemnify each indemnified party net aggregate proceeds received from the sale of Registrable Securities pursuant to the full extent provided in Section 12(a) applicable Registration Statement or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Prospectus.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees and each Guarantor, jointly and severally, agree to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreementthe Initial Purchasers, each PersonHolder, if any, who participates as an underwriter in any such offering and sale of Registrable Securitieseach Participating Broker-Dealer, and each Person, if any, who controls such any Holder or such underwriter within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act and their respective directors, trustees, officers, partners, agents, employees each affiliate of any Holder within the meaning of Rule 405 under the 1933 Act from and Affiliates against any and all losses, claims, damagesdamages and liabilities (including, liabilities and without limitation, any legal or other expenses (including reasonable attorneys’ fees and expenses, as incurred, and reasonably incurred in connection with defending or investigating any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld such action or delayedclaim) (collectively, “Losses”) incurred caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement or any amendment thereof or any Prospectus included therein (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or in any Preliminary Prospectus or “issuer free writing prospectus,” as defined in Rule 433 (“Issuer FWP”) of the 1933 Act, relating to a Shelf Registration, pursuant to which Exchange Securities or Registrable Securities were registered under the 1933 Act, including all documents incorporated therein by reference, if any, or caused by any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements losses, claims, damages or omissions arise out of or liabilities are based upon (i) caused by any such untrue statement or omission or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with based upon information with respect relating to such any Holder furnished in writing to the Company in writing by or on behalf of such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this AgreementEach Holder agrees severally, each Holder holding Registrable Securities to be covered thereby agrees, severally and but not jointly with any other Holdersjointly, to indemnify and hold harmless the Company, each PersonGuarantor, if anythe Initial Purchasers, who participates as an underwriter in any such offering and sale the other selling Holders and each of Registrable Securities their respective directors and officers, and each Person, if any, who controls the Company Company, the Initial Purchasers, or such underwriter any other selling Holder within the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange 1934 Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact the same extent as the foregoing indemnity contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(din Section 4(a) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleadinghereof, but only with reference to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect relating to such Holder furnished in writing to the Company in writing by such Holder or its counsel specifically expressly for use therein; providedin such Registration Statement, however, that Prospectus or amendment or supplement thereto or in any Preliminary Prospectus or Issuer FWP. In no event shall the liability of any Holder shall hereunder be required to indemnify greater in amount than the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the dollar amount of the gross proceeds, after deducting any underwriting discounts and commissions, proceeds received by or on behalf of such Holder upon the sale of the Registrable Securities pursuant to the Registration Statement (or any amendment thereto) giving rise to such indemnification obligation.
(c) Any Person entitled In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to indemnification hereunder agrees Section 4(a) or 4(b) hereof, such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to give prompt written notice the indemnified party to represent the indemnified party and any others the indemnifying party after may designate in such proceeding and shall pay the receipt by reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of unless (i) the indemnifying party pursuant to this Section 12 except and the indemnified party shall have mutually agreed to the extent retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the indemnifying party shall have been actually and materially prejudiced as a result not, in respect of such failure. In case any such action shall be brought against the legal expenses of any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless any proceeding or related proceedings in the reasonable judgment of any indemnified partysame jurisdiction, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel separate firm (in addition to any local counsel) for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are such indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the and that all such fees and expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing by ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated, in the case of more than one counsel for all parties indemnified by such indemnifying party with respect pursuant to such claimSection 4(a) and, unless in the reasonable judgment case of any parties indemnified partypursuant to Section 4(b), based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party Company and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the Guarantors. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (Ai) such settlement is entered into more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected 45 days after receipt by the Holders holding a majority such indemnifying party of the Registrable Securities who are aforesaid request, (ii) such indemnifying party shall not have reimbursed the indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request prior to the Company), date of such settlement and (Biii) more than one counsel for such indemnified party shall have given the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsindemnifying party at least 30 days’ prior written notice of its intention to settle. No indemnifying party, in defense of any such action, suit, proceeding or investigation, party shall, except with without the prior written consent of each the indemnified party, consent to the entry effect any settlement of any judgment pending or entry into threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement which (x) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding and (y) does not include a statement as to or admission of fault, culpability or a failure to act, by or on behalf of an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If To the extent that the indemnification from the indemnifying party provided for in this Section 12 4(a) or 4(b) is unavailable to an indemnified party hereunder or insufficient in respect of any Losseslosses, claims, damages or liabilities referred to therein, then the each indemnifying partyparty under such paragraph, in lieu of indemnifying such indemnified partyparty thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the one hand and the indemnified party or parties on the other hand or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party or parties on the one hand and of the indemnified party or parties on the other hand in connection with the actions which statements or omissions that resulted in such Losseslosses, claims, damages or liabilities, as well as any other relevant equitable considerations; provided, however, that no Holder . The relative benefits received by the Company and each Guarantor shall be required deemed to contribute any amount in excess of be equal to the amount of total net proceeds from the gross proceeds, after initial placement pursuant to the Purchase Agreement (before deducting any underwriting discounts and commissions, received by such Holder upon the sale expenses) of the Registrable Securities giving rise to which such contribution obligationlosses, claims, damages or liabilities relate. The relative benefits received by any Holders and the Initial Purchasers shall be deemed to be equal to the value of receiving registration rights under this Agreement for the Registrable Securities. The relative fault of such indemnifying party the Holders and indemnified party the Initial Purchasers on the one hand and the Company and each Guarantor on the other hand shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such indemnifying party by the Holders and the Initial Purchasers or indemnified partyby the Company and each Guarantor, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The Holders’ and the Initial Purchasers’ respective obligations to contribute pursuant to this Section 4(d) are several in proportion to the respective number of Registrable Securities they have sold pursuant to a Registration Statement, and not joint. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 4(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by a an indemnified party as a result of the Losses losses, claims, damages or liabilities referred to above in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth in Section 12(c)above, any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation such action or proceedingclaim. Notwithstanding this Section 4(d), no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Securities sold by it were offered exceeds the amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of remedies provided for in this Section 12 4 are not exclusive and shall not limit any rights or remedies which may otherwise be in addition available to any liability which any indemnifying party may have to any an indemnified party at law or in equity, hereunder, under the Purchase Agreement or otherwise. The indemnity and contribution provisions contained in this Section 4 shall survive the remain operative and in full force and effect regardless of (i) any termination of this Agreement.
, (fii) The indemnification and contribution required by this Section 12 shall be any investigation made by periodic payments or on behalf of any Holder or Initial Purchaser, any person controlling any Holder or Initial Purchaser or any affiliate of any Holder or Initial Purchaser or by or on behalf of the amount thereof during Company or any Guarantor, its officers or directors or any person controlling the course Company or any Guarantor and (iii) the sale of any action, suit, proceeding Registrable Securities by any Holder or investigation, as and when invoices are received or Losses are incurredInitial Purchaser.
Appears in 1 contract
Sources: Registration Rights Agreement (DG Consents Sub, Inc.)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementNewbridge and its officers, each Persondirectors, if anyshareholders, who participates as an underwriter in any such offering and sale of Registrable Securitiesemployees, affiliates, agents and each Person, if any, person who controls such Holder or such underwriter Newbridge (and any of its affiliates) within the meaning of Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange Act of 1934, as amended (each an “Indemnified Person”), to the fullest extent lawful, against any and their respective directorsall claims, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities liabilities, and expenses (including reasonable attorneys’ all fees and expenses, as incurred, disbursements of counsel and any amounts paid other expenses reasonably incurred in any settlement effected connection with the Company’s consentinvestigation of, preparation for and defense of any pending or threatened claim, action, proceeding, inquiry, investigation or litigation, to which consent shall not be unreasonably withheld or delayedan Indemnified Person may become subject) (collectively, “LossesDamages”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions that arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant re99999lated to any actual or threatened actionproposed Corporate Advisory assignment or Newbridge ‘s engagement under this Agreement. However, suitthis indemnification shall not include any Damages that are found in a final judgment by a court of competent jurisdiction to have resulted from the bad faith, proceeding willful misconduct or investigation arising out gross negligence of Newbridge.
b) If the indemnity above is unavailable or based upon any untrue insufficient to hold harmless an Indemnified Person, then the Company shall contribute to amounts paid or alleged untrue statement payable by an Indemnified Person for Damages in such proportion as appropriately reflects the relative benefits received by the Company on the one hand and Newbridge on the other. If applicable law does not permit allocation solely on the basis of a material fact contained inbenefits, or any omission or alleged omission of a material fact required to then such contribution shall be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under made in such proportion as appropriately reflects both the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light relative benefits and relative fault of the circumstances then existing) not misleadingparties and other relevant equitable considerations. However, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically no event shall Newbridge‘s aggregate contributions for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of Damages exceed the amount of the gross proceeds, after deducting any underwriting discounts and commissions, fees actually received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationNewbridge under this Agreement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such indemnified party Newbridge of notice of any written notice of claim or the commencement of any action, suit, proceeding or investigation or threat thereof made in writing action for which an Indemnified Person may be entitled to indemnity, Newbridge shall promptly notify the Company of such indemnified party may claim indemnification or contribution pursuant the commencement of such against the Indemnified Person that would give rise to this Agreementindemnification. However, provided that any delay or failure to give such notification shall notify the Company will not affect relieve the obligations Company of the indemnifying party pursuant to this Section 12 its indemnity obligation except to the extent the indemnifying party shall have been actually and it is materially prejudiced as a result of by such delay or failure. In case any such action shall be brought against any indemnified party and it shall notify The Company may participate in the indemnifying party defense of the commencement thereof, claim and shall assume the indemnifying party defense of the claim and shall be entitled to participate therein and, to pay as incurred the extent that it shall so elect, jointly with fees and disbursements of counsel for the proceeding. In any other indemnifying party similarly notified, proceeding where the Company declines to assume the defense thereofor the Company’s counsel is deemed to have a conflict of interest, with the Indemnified Person shall have the right to retain its own counsel which shall be reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party Newbridge. The Company shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for pay the fees and expenses of (i) more than one such counsel for all Holders holding Registrable Securities who are indemnified partiesas incurred. However, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim Company shall not be obligated to pay responsible for the fees and expenses of more than one counsel (other than counsel of record) for all parties indemnified by such indemnifying party with respect to such Indemnified Persons.
d) The Company will not enter into any waiver, release or settlement for any threatened or pending claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of or settle any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the related litigation for which indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall may be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available sought under this Section 12, the indemnifying parties shall indemnify each indemnified Agreement (whether or not Indemnified Persons are a formal party to the full extent provided in Section 12(a) or 12(blitigation), as unless the case may bewaiver, without regard to the relative fault release or settlement includes an unconditional release of such indemnifying parties or indemnified party or each Indemnified Person from any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any and all liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments arising out of the amount thereof during the course of any threatened or pending claim, action, suitproceeding, proceeding investigation or investigation, as and when invoices are received or Losses are incurredlitigation.
Appears in 1 contract
Sources: Investment Banking Engagement Agreement (Ozop Surgical Corp.)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each Holder in any offering or sale of Registrable Securities pursuant to this AgreementCommon Shares, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable SecuritiesCommon Shares, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon upon: (i) any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (iA) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (iiB) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iiiC) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented; or (ii) any violation by the Company of any other federal or state securities laws or regulations applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration. Notwithstanding the foregoing provisions of this Section 8(a), the Company shall not be liable to any such Holder or underwriter or to any other indemnified party under the indemnity agreement in this Section 8(a) for any Losses that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either: (i) (A) such Holder or underwriter failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Common Shares by such Holder or underwriter to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission; or (ii) (A) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (B) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented as required hereunder, such Holder or underwriter thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Common Shares by such Holder or underwriter to the Person asserting the claim from which such Losses arise. Such rights to indemnity and reimbursement of expenses shall survive the transfer of the Registrable Common Shares by such indemnified party.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding of Registrable Securities Common Shares to be covered thereby agreesshall, severally and not jointly with any other Holders, to indemnify and hold harmless harmless, to the fullest extent permitted by law, the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities Common Shares and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliatesaffiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b11(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to Common Shares of such indemnification obligationHolder under such Registration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 11 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding of Registrable Securities Common Shares who are indemnified parties, selected by the Holders holding of a majority Majority of the Registrable Securities held by all Holders Common Shares who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders holding of Registrable Securities Common Shares who are indemnified parties, selected by the Holders holding of a majority Majority of the Registrable Securities Common Shares who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 1211. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 11 is unavailable to an indemnified party hereunder in respect of to any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to such contribution obligationCommon Shares of the Holder under the applicable Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c11(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d11(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d11(d). If indemnification is available under this Section 1211, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a11(a) or 12(b11(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d11(d).
(e) The provisions of this Section 12 11 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 11 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company Cambridge Heart agrees to indemnify and hold harmless each Holder AH&H (together with its affiliates and their respective control persons, directors, officers, employees and agents, "Indemnified Persons") to the full extent lawful against any and all claims, losses, damages, liabilities, costs and expenses as incurred (including all reasonable fees and disbursements of counsel and all reasonable travel and other out-of-pocket expenses reasonably incurred in connection with the investigation of, preparation for and defense of any offering pending or sale threatened claim, action, proceeding or investigation and any litigation or other proceeding arising therefrom, to which an Indemnified Person may become subject) (collectively, "Damages") arising out of Registrable Securities or related to any actual or proposed Transaction or AH&H's engagement hereunder; provided, however, that there shall be excluded from such indemnification any such portion of such Damages as are found in a final judgment by a court of competent jurisdiction to have resulted from the willful misconduct or gross negligence on the part of the Indemnified Person, other than any action undertaken at the request or with the consent of Cambridge Heart. The foregoing indemnification obligation is in addition to, and not in limitation of, any other rights AH&H may have, including but not limited to any right of contribution. In the event that the foregoing indemnity is unavailable or insufficient to hold harmless an Indemnified Person, then Cambridge Heart shall contribute to amounts paid or payable by an Indemnified Person in respect of such Damages in such proportion as appropriately reflects the relative benefits received by it on the one hand and AH&H on the other. If applicable law does not permit allocation solely on the basis of benefits, then such contribution shall be made in such proportion as appropriately reflects both the relative benefits and relative fault of the parties and other relevant equitable considerations. The foregoing is subject to the limitation that in no event shall AH&H's aggregate contributions in respect of Damages exceed the amount of fees actually received by AH&H pursuant to this Agreement. For purposes hereof, each Personrelative benefits to Cambridge Heart and AH&H of the Transaction or other similar transaction shall be deemed to be in the same proportion that the total value paid or received or contemplated to be paid or received by Cambridge Heart and/or its security holders in connection with the Transaction or other similar transaction bears to the fees paid to AH&H pursuant to its engagement in respect of such Transaction. AH&H shall promptly notify Cambridge Heart of any claim or threatened claim being asserted against AH&H which would give rise to an indemnification hereunder, if any, who participates as an underwriter and agrees that Cambridge Heart shall have the right to participate in the defense of any such offering Cambridge Heart, Inc. September 5, 2002 Page 7 claim and, to the extent that Cambridge Heart shall wish, to assume the defense thereof and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within shall pay as incurred the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expensesdisbursements of such counsel related to such proceeding. In any such proceeding, as incurredAH&H shall have the right to retain its own counsel at Cambridge Heart's expense. Cambridge Heart will not enter into any waiver, and release or settlement with respect to any amounts paid threatened or pending claim, action, proceeding or investigation or settle any litigation arising therefrom in any settlement effected with respect of which indemnification hereunder may be sought (whether or not Indemnified Persons are a formal party thereto) without the Company’s consent, prior written consent of AH&H (which consent shall not be unreasonably withheld or delayed) (collectively), “Losses”) incurred by unless such party pursuant to waiver, release or settlement includes an unconditional release of AH&H from any actual or threatened action, suit, proceeding or investigation and all liability arising out of such threatened or based upon any untrue or alleged untrue statement of a material fact contained inpending claim, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suitproceeding, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification litigation. Under no circumstances shall this paragraph be modified or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyamended.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Personperson, if any, who controls such any Holder or such underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damagesdamages and liabilities (including, liabilities and without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) caused by (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedi) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement or any amendment thereof, including all documents incorporated therein by reference, or any the omission or alleged omission therefrom of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein not misleading or (in the case ii) any untrue statement or alleged untrue statement of a Prospectus, a Free Writing material fact contained in any preliminary Prospectus or “issuer information,” any Prospectus (or amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances then existing) under which they were made, not misleading, ; except in each case insofar as such statements losses, claims, damages or omissions liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information relating to any Holder furnished to the Company in writing by such Holder expressly for use therein. The Company shall also indemnify each Exchanging Dealer participating in the offering and sale of the Notes and each person who controls any such Exchanging Dealer (within the meaning of Section 15 of the Act or Section 20 of the Exchange Act) to the same extent and with the same limitations as provided above with respect to the indemnification of the Holders of the Notes. The foregoing notwithstanding, the Company shall not be liable to the extent that such losses, claims, damages or liabilities arise out of or are based upon (i) any such an untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity any Prospectus that is a preliminary Prospectus if (i) such indemnified person failed to send or deliver a copy of the Prospectus with information with respect or prior to the delivery of written confirmation of the sale of the Notes giving rise to such Holder furnished in writing to the Company by such Holder losses, claims, damages or its counsel expressly for use therein, liabilities and (ii) the use of any Prospectus, Free Writing Prospectus would have corrected such untrue statement or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedomission.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holdersjointly, to indemnify and hold harmless the Company, each Personthe Company's directors, if anythe Company's officers who sign a Registration Statement, who participates as an underwriter in any such offering and sale of Registrable Securities and each Personperson, if any, who controls the Company or such underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange ActAct from and against any and all losses, claims, damages and their respective directorsliabilities (including, trusteeswithout limitation, officers, partners, agents, employees and Affiliates, against all Losses any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue statement or alleged untrue statement of a material fact contained inin any Registration Statement or any amendment thereof, any preliminary Prospectus or any Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto), or caused by any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only with reference to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect relating to such Holder furnished in writing to the Company in writing by such Holder or its counsel specifically expressly for use therein; providedin such Registration Statement, howeverpreliminary Prospectus, that no Holder shall be required to indemnify the Company Prospectus or any other indemnified party under this Section 12(b) with respect to amendments or supplements thereto. In no event shall the liability of any amount in excess Holder of the Notes hereunder be greater in amount than the net dollar amount of the gross proceeds, after deducting any underwriting discounts and commissions, proceeds received by such Holder upon from the sale of the Registrable Securities Notes giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action proceeding (including any governmental investigation) shall be brought against instituted involving any person in respect of which indemnity may be sought pursuant to either of the two preceding paragraphs, such person (the "indemnified party and it party") shall promptly notify the person against whom such ------------------ indemnity may be sought (the "indemnifying party party") in writing and the ------------------ indemnifying party, upon request of the commencement thereofindemnified party, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with retain counsel reasonably satisfactory to such the indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume represent the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event others the indemnifying party may designate in such proceeding and shall not be liable for pay the reasonable fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) more than one counsel for all Holders holding Registrable Securities who are the indemnifying party and the indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection party shall be reasonably satisfactory have mutually agreed to the Company), retention of such counsel or (ii) more than one the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel for would be inappropriate due to actual or potential differing interests between them. It is understood that the underwriters in an Underwritten Offering or (iii) more than one counsel for the Companyindemnifying party shall not, in each case respect of the legal expenses of any indemnified party in connection with any one action or separate but similar proceeding or related actions. An indemnifying party who is not entitled toproceedings in the same jurisdiction, or elects not to, assume the defense of a claim shall not be obligated to pay liable for (a) the fees and expenses of more than one counsel separate firm (in addition to any local counsel) for all parties indemnified by such indemnifying party with respect to such claimHolders and all persons, unless in if any, who control any Holders within the reasonable judgment meaning of any indemnified partyeither Section 15 of the Act or Section 20 of the Exchange Act, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay (b) the fees and expenses of more than one separate firm (in addition to any local counsel) for the Company and each person, if any, who controls the Company within the meaning of either such additional counselSection, provided and that all such fees and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for the Company and any such control persons of the Company, such firm shall be designated in writing by the Company. In the case of any such separate firm for the Holders or any such control persons of any Holders, such firm shall be designated in writing on behalf of the Majority Holders. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (Ai) such settlement is entered into more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected 30 days after receipt by the Holders holding a majority such indemnifying party of the Registrable Securities who are aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified parties (which selection shall be reasonably satisfactory party in accordance with such request prior to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsdate of such settlement. No indemnifying party, in defense of any such action, suit, proceeding or investigation, party shall, except with without the prior written consent of each the indemnified party, consent to the entry effect any settlement of any judgment pending or entry into threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement which does not include as includes an unconditional term thereof the giving by the claimant or plaintiff to release of such indemnified party of a release from all liability in respect to on claims that are the subject matter of such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyproceeding.
(d) If To the extent the indemnification from the indemnifying party provided for in paragraph (a) or (b) of this Section 12 6 is unavailable to an indemnified party hereunder or insufficient in respect of any Losseslosses, claims, damages or liabilities referred to herein, then the each indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party in connection with the actions statements or omissions which resulted in such Losseslosses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, by such indemnifying party or by such indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result Holders' respective obligations to contribute pursuant to this paragraph are several in proportion to the respective number of the Losses referred Notes they have sold pursuant to above shall be deemed to includea Registration Statement, subject to and not joint.
(e) The Company and the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Holders agree that it would not be just and or equitable if contribution pursuant to this Section 12(d6(d) were determined by pro rata allocation or by any other method of allocation that does not take into account of the consideration equitable considerations referred to in paragraph (d) of this Section 12(d)6. If indemnification is available under The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities referred to in paragraph (d) of this Section 126 shall be deemed to include, subject to the indemnifying parties shall indemnify each limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 6, a Holder of the Notes shall not be required to contribute any amount in excess of the amount by which the total price at which the Notes sold by such indemnifying party and distributed to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard public were offered to the relative fault public pursuant to any Registration Statement exceeds the amount of any damages which such indemnifying party has otherwise been required to pay by reason of such indemnifying parties untrue or indemnified party alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any other equitable consideration person who was not guilty of such fraudulent misrepresentation. The remedies provided for in this Section 12(d).
(e) The provisions of this Section 12 6 are not exclusive and shall not limit any rights or remedies which may otherwise be in addition to any liability which any indemnifying party may have available to any indemnified party and shall survive the termination of this Agreementat law or in equity.
(f) The indemnification indemnity and contribution required by provisions contained in this Section 12 6 shall be remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by periodic payments of the amount thereof during the course or on behalf of any actionHolder or any person controlling any Holder, suit, proceeding or investigation, as the Company or any person controlling the Company and when invoices are received or Losses are incurred(iii) the sale of any Notes by any Holder.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementNewbridge and its officers, each Persondirectors, if anyshareholders, who participates as an underwriter in any such offering and sale of Registrable Securitiesemployees, affiliates, agents and each Person, if any, person who controls such Holder or such underwriter Newbridge (and any of its affiliates) within the meaning of Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange Act of 1934, as amended (each an “Indemnified Person”), to the fullest extent lawful, against any and their respective directorsall claims, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities liabilities, and expenses (including reasonable attorneys’ all fees and expenses, as incurred, disbursements of counsel and any amounts paid other expenses reasonably incurred in any settlement effected connection with the Company’s consentinvestigation of, preparation for and defense of any pending or threatened claim, action, proceeding, inquiry, investigation or litigation, to which consent shall not be unreasonably withheld or delayedan Indemnified Person may become subject) (collectively, “LossesDamages”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions that arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant related to any actual or threatened actionproposed Corporate Advisory assignment or Newbridge ‘s engagement under this Agreement. However, suitthis indemnification shall not include any Damages that are found in a final judgment by a court of competent jurisdiction to have resulted from the bad faith, proceeding willful misconduct or investigation arising out gross negligence of Newbridge.
b) If the indemnity above is unavailable or based upon any untrue insufficient to hold harmless an Indemnified Person, then the Company shall contribute to amounts paid or alleged untrue statement payable by an Indemnified Person for Damages in such proportion as appropriately reflects the relative benefits received by the Company on the one hand and Newbridge on the other. If applicable law does not permit allocation solely on the basis of a material fact contained inbenefits, or any omission or alleged omission of a material fact required to then such contribution shall be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under made in such proportion as appropriately reflects both the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light relative benefits and relative fault of the circumstances then existing) not misleadingparties and other relevant equitable considerations. However, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically no event shall Newbridge’s aggregate contributions for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of Damages exceed the amount of the gross proceeds, after deducting any underwriting discounts and commissions, fees actually received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationNewbridge under this Agreement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such indemnified party Newbridge of notice of any written notice of claim or the commencement of any action, suit, proceeding or investigation or threat thereof made in writing action for which an Indemnified Person may be entitled to indemnity, Newbridge shall promptly notify the Company of such indemnified party may claim indemnification or contribution pursuant the commencement of such against the Indemnified Person that would give rise to this Agreementindemnification. However, provided that any delay or failure to give such notification shall notify the Company will not affect relieve the obligations Company of the indemnifying party pursuant to this Section 12 its indemnity obligation except to the extent the indemnifying party shall have been actually and it is materially prejudiced as a result of by such delay or failure. In case any such action shall be brought against any indemnified party and it shall notify The Company may participate in the indemnifying party defense of the commencement thereof, claim and shall assume the indemnifying party defense of the claim and shall be entitled to participate therein and, to pay as incurred the extent that it shall so elect, jointly with fees and disbursements of counsel for the proceeding. In any other indemnifying party similarly notified, proceeding where the Company declines to assume the defense thereofor the Company’s counsel is deemed to have a conflict of interest, with the Indemnified Person shall have the right to retain its own counsel which shall be reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party Newbridge. The Company shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for pay the fees and expenses of (i) more than one such counsel for all Holders holding Registrable Securities who are indemnified partiesas incurred. However, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim Company shall not be obligated to pay responsible for the fees and expenses of more than one counsel (other than counsel of record) for all parties indemnified by such indemnifying party with respect to such Indemnified Persons.
d) The Company will not enter into any waiver, release or settlement for any threatened or pending claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of or settle any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the related litigation for which indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall may be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available sought under this Section 12, the indemnifying parties shall indemnify each indemnified Agreement (whether or not Indemnified Persons are a formal party to the full extent provided in Section 12(a) or 12(blitigation), as unless the case may bewaiver, without regard to the relative fault release or settlement includes an unconditional release of such indemnifying parties or indemnified party or each Indemnified Person from any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any and all liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments arising out of the amount thereof during the course of any threatened or pending claim, action, suitproceeding, proceeding investigation or investigation, as and when invoices are received or Losses are incurredlitigation.
Appears in 1 contract
Sources: Investment Banking Engagement Agreement (Blue Star Foods Corp.)
Indemnification; Contribution. (ai) The In connection with any Shelf Registration Statement, the Company agrees to indemnify and hold harmless each Holder in any offering of Notes or sale Common Stock issued upon conversion thereof covered thereby, the directors, officers, employees and agents of Registrable Securities pursuant to this Agreement, each Person, if any, such Holder and each person who participates as an underwriter in controls any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act against any and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damagesdamages or liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid or actions in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedrespect thereof) (collectively, “Losses”i) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained inin the Shelf Registration Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or Prospectus, or in any amendment thereof or supplement thereto, or (ii) arise out of or are based upon the omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in each connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any case insofar as to the extent that any such statements loss, claim, damage or omissions arise liability arises out of or are is based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of any such Holder or its counsel expressly specifically for use inclusion therein, (ii) the use of a Shelf Registration Statement or the related Prospectus during a period when a stop order has been issued in respect of such Shelf Registration or any Prospectusproceedings for that purpose have been initiated or use of a Prospectus when use of such Prospectus has been deferred pursuant to Section 2(c); provided, Free Writing Prospectus or “issuer information” after such time as the obligation of further, in each case, that the Company to keep effective has delivered prior notice, and the Registration Statement Holders have received such prior notice, in accordance with Section 7(c) hereof of which such Prospectus forms a part has expired stop order, initiation of proceedings or deferral or (iii) if the use Holder fails to deliver a Prospectus or the then current Prospectus. This indemnity agreement will be in addition to any liability which the Company may otherwise have.
(ii) The Company also agrees to indemnify or contribute to Losses, as provided in Section 5(d), of any ProspectusUnderwriters of the Notes or the Common Stock issued upon conversion thereof registered under a Shelf Registration Statement, Free Writing Prospectus or “issuer information” after their officers and directors and each person who controls such time Underwriters on terms that are customarily made by issuers to Underwriters and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement, as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedprovided in Section 3(n) hereof.
(b) In connection with any Each Holder of Notes or Common Stock issued upon conversion thereof covered by a Shelf Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, agrees to indemnify and hold harmless (i) the Company, (ii) each Personof its directors, if any, (iii) each of its officers who participates as an underwriter in any signs such offering Shelf Registration Statement and sale of Registrable Securities and (iv) each Person, if any, person who controls the Company or such underwriter within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by Act to the same extent as the foregoing indemnity from the Company to each such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleadingHolder, but only with reference to the extent that any such untrue statement or omission is made in reliance on and in conformity with written information with respect relating to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically for use therein; provided, however, that no inclusion in the documents referred to in the foregoing indemnity. This indemnity agreement will be in addition to any liability which any such Holder shall be required to indemnify the Company or any other may otherwise have.
(c) Promptly after receipt by an indemnified party under this Section 12(b) with respect to any amount in excess 5 of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may will, if a claim indemnification or contribution pursuant in respect thereof is to this Agreement, provided that failure to give such notification shall not affect the obligations of be made against the indemnifying party pursuant to under this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall 5, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to participate therein andappoint counsel of the indemnifying party's choice at the indemnifying party's expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the extent that it indemnified party. Notwithstanding the indemnifying party's election to appoint counsel to represent the indemnified party in an action, the indemnified party shall so electhave the right to employ separate counsel (including local counsel), jointly with any other and the indemnifying party similarly notifiedshall bear the reasonable fees, costs and expenses of such separate counsel (and local counsel) if (i) the use of counsel chosen by the indemnifying party to assume represent the defense thereofindemnified party would present such counsel with a conflict of interest, with (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to such the indemnified party, and party to represent the indemnified party within a reasonable time after notice from of the institution of such action, or (iv) the indemnifying party to such shall authorize the indemnified party to employ separate counsel at the expense of its election so to assume the defense thereofindemnifying party; provided further, that the indemnifying party shall not be liable to such indemnified party responsible for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one separate counsel for (together with appropriate local counsel) representing all the indemnified parties indemnified by such under paragraph (a)(i), paragraph (a)(ii) or paragraph (b) above. An indemnifying party with respect to such claimwill not, unless in without the reasonable judgment prior written consent of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering settle or (C) more than one counsel for the Company, in each case in connection with any one action compromise or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment with respect to any pending or entry into any settlement threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding and does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party admission of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyfault.
(d) If In the indemnification from event that the indemnifying party indemnity provided for in this Section 12 5(a) or (b) is unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of for any Lossesreason, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall have a joint and several obligation to contribute to the amount paid aggregate losses, claims, damages and liabilities (including legal or payable by other expenses reasonably incurred in connection with investigating or defending same) (collectively "Losses") to which such indemnified party as a result of such Losses may be subject in such proportion as is appropriate to reflect the relative fault of benefits received by such indemnifying party, on the indemnifying party one hand, and such indemnified party in connection with party, on the actions other hand, from the Initial Placement and the Shelf Registration Statement which resulted in such Losses; provided, however, that in no case shall any Underwriter be responsible for any amount in excess of the underwriting discount or commission applicable to the Notes and the Common Stock issued upon conversion thereof purchased by such Underwriter under the Shelf Registration Statement which resulted in such Losses. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the indemnifying party and the indemnified party shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of such indemnifying party, on the one hand, and such indemnified party, on the other hand, in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations; provided, however, that no Holder . Benefits received by the Company shall be deemed to be equal to the sum of (x) the total net proceeds from the Initial Placement (before deducting expenses) and (y) the total amount of additional interest which the Company was not required to contribute pay as a result of registering the Notes and the Common Stock issued upon conversion thereof covered by the Shelf Registration Statement which resulted in such Losses. Benefits received by any amount in excess other Holders shall be deemed to be equal to the value of receiving the amount of Notes or the gross proceeds, after deducting Common Stock issuable upon conversion thereof registered under the Act. Benefits received by any Underwriter shall be deemed to be equal to the total underwriting discounts and commissions, received by such Holder upon as set forth on the sale cover page of the Registrable Securities giving rise to Prospectus forming a part of the Shelf Registration Statement which resulted in such contribution obligationLosses. The relative Relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, to whether any action in question, including any alleged untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied byprovided by the indemnifying party, such indemnifying party on the one hand, or by the indemnified party, and on the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionother hand. The amount paid parties agree that it would not be just and equitable if contribution were determined by pro rata allocation or payable by a party as a result any other method of allocation which does not take account of the Losses equitable considerations referred to above shall be deemed to include, subject to above. Notwithstanding the limitations set forth in provisions of this Section 12(c5(d), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to For purposes of this Section 12(d) were determined by pro rata allocation 5, each person who controls a Holder within the meaning of either the Act or by any other method the Exchange Act and each director, officer, employee and agent of allocation that does not take into account such Holder shall have the consideration referred same rights to contribution as such Holder, and each person who controls the Company within the meaning of either the Act or the Exchange Act, each officer of the Company who shall have signed the Shelf Registration Statement and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d5(d).
(e) The provisions of this Section 12 shall be 5 will remain in addition full force and effect, regardless of any investigation made by or on behalf of any Holder or the Company or any of the officers, directors or controlling persons referred to any liability which any indemnifying party may have to any indemnified party in Section 5 hereof, and shall will survive the termination sale by a Holder of this AgreementNotes or Common Stock issuable upon conversion thereof covered by a Shelf Registration Statement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) Indemnification by the Company. The Company agrees to indemnify ------------------------------ and hold harmless each Holder in any offering or sale of Registrable Securities pursuant harmless, to this Agreementthe fullest extent permitted by law, each PersonDesignated Holder, if anyits officers, who participates as an underwriter in any such offering directors, trustees, partners, employees, advisors and sale of Registrable Securities, agents and each Person, if any, Person who controls such Holder or such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act) such Designated Holder from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as the same are caused by or contained in any information concerning such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Designated Holder furnished in writing to the Company by such Designated Holder or its counsel expressly for use therein, (ii) including, without limitation, the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder pursuant to Section 8(b). The Company shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect also provide customary indemnities to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale underwriters of the Registrable Securities giving rise to Securities, their officers, directors and employees and each Person who controls such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(fthe Securities Act and the Exchange Act) to the same extent as provided above with respect to the indemnification of the Securities Act) shall be entitled to contribution from any Person who was not guilty Designated Holders of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Registrable Securities.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to will indemnify and hold harmless each Holder Agent and its respective affiliates (as such term is defined in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 Rule 501(b) of the Securities 1933 Act or Section 20 of the Exchange Act Regulations (each, an “Affiliate”)), from and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all any losses, claims, damagesdamages or liabilities, joint or several, to which such Agent and its respective Affiliates may become subject, under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid or actions in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedrespect thereof) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising arise out of or are based upon any an untrue statement or alleged untrue statement of a material fact contained inin the Registration Statement or the Prospectus, or any omission amendment or alleged omission of a material fact required to be stated insupplement thereto, any Registration Statementmaterials or information provided to investors by, Prospectusor with the approval of, the Company in connection with the marketing of the offering of the Shares, including any road show or investor presentations made to investors by the Company, or any Issuer Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, 1933 Act or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except and will reimburse the Agents and their respective Affiliates for any legal or other expenses (including the fees and disbursements of counsel chosen by the Agents) reasonably incurred by such Agent and its respective Affiliates in each case insofar connection with investigating or defending any such action or claim as such statements expenses are incurred; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or omissions arise liability arises out of or are is based upon (i) any such an untrue statement or alleged untrue statement or omission or alleged omission made in reliance on upon and in conformity with any information with respect relating to such Holder any Agent furnished in writing to the Company in writing by such Holder or its counsel Agent expressly for use therein, (ii) it being understood and agreed that the use of any Prospectus, Free Writing Prospectus or “issuer information” after only such time as information furnished by the obligation Agents consists of the Company to keep effective the Registration Statement of which information described as such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedin in Section 14 hereof.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agreesEach Agent, severally and not jointly with any other Holdersjointly, to will indemnify and hold harmless the CompanyCompany against any losses, each Personclaims, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls damages or liabilities to which the Company or such underwriter within may become subject, under the meaning of Section 15 of the Securities 1933 Act or Section 20 of the Exchange Actotherwise, and their respective directorsinsofar as such losses, trusteesclaims, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual damages or threatened action, suit, proceeding liabilities (or investigation arising actions in respect thereof) arise out of or are based upon any an untrue statement or alleged untrue statement of a material fact contained inin the Registration Statement or the Prospectus, or any amendment or supplement thereto or any Issuer Free Writing Prospectus, or arise out of or are based upon the omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, in each case to the extent, but only to the extent extent, that any such untrue statement or alleged untrue statement or omission is or alleged omission was made in the Registration Statement or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically Agent expressly for use therein, it being understood that the only such information furnished by any Agent consists of the information set forth in Section 14 hereof; provided, however, that no Holder shall be required to indemnify and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to action or claim as such indemnification obligationexpenses are incurred.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such an indemnified party under subsection (a) or (b) above of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may shall, if a claim indemnification or contribution pursuant in respect thereof is to this Agreement, provided that failure to give such notification shall not affect the obligations of be made against the indemnifying party pursuant under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to this Section 12 except to the extent notify the indemnifying party shall not relieve it from any liability which it may have been actually and materially prejudiced as a result of to any indemnified party otherwise than under such failuresubsection. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, and be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation. No indemnifying party shall, unless in without the reasonable judgment written consent of any the indemnified party, based on effect the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering settlement or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled tocompromise of, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment with respect to, any pending or entry into any settlement threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to, or an unconditional term thereof the giving admission of, fault, culpability or a failure to act, by or on behalf of any indemnified party. An indemnifying party shall not be required to indemnify an indemnified party for any amount paid or payable by the claimant or plaintiff to such indemnified party in the settlement of a release from all liability in respect to such any action, suit, proceeding or investigation without the written consent of the indemnifying party, which consent shall not be unreasonably withheld, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry from and against any loss or liability by reason of any judgment such settlement or entry into any settlement without the consent of each indemnifying partyjudgment.
(d) If the indemnification from the indemnifying party provided for in this Section 12 6 is unavailable to or insufficient to hold harmless an indemnified party hereunder under subsection (a) or (b) above in respect of any Losseslosses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then the each indemnifying party, in lieu of indemnifying such indemnified party, party shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand, and the Agents, on the other hand, from the offering of the Shares. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if the indemnified party failed to give the notice required under subsection (c) above, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the indemnifying party Company, as the case may be, on the one hand, and indemnified party the Agents, on the other hand, in connection with the actions statements or omissions which resulted in such Losseslosses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations; provided. The relative benefits received by the Company, howeveras the case may be, that no Holder on the one hand, and the Agents, on the other hand, shall be required deemed to contribute any amount be in excess of the amount of same proportion as the gross proceedstotal net proceeds from the offering (before deducting expenses) received by the Company, after deducting any as the case may be, bear to the total underwriting discounts and commissions, commissions received by such Holder upon the sale Agents, in each case as set forth in the table on the cover page of the Registrable Securities giving rise to such contribution obligationProspectus. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied byby the Company, such indemnifying party as the case may be, on the one hand or indemnified partythe Agents, on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The amount paid or payable by a party as a result of Company and the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties Agents agree that it would not be just and equitable if contribution pursuant to this Section 12(dsubsection (d) were determined by pro rata allocation or by any other method of allocation that which does not take into account of the consideration equitable considerations referred to above in this Section 12(dsubsection (d). If indemnification is available under The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Section 12subsection (d) shall be deemed to include any legal or other expenses reasonably incurred and documented by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), the indemnifying parties Agents shall indemnify each indemnified party not be required to contribute any amount in excess of the amount by which the total price at which the Shares sold by it and distributed to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard public were offered to the relative fault public exceeds the amount of any damages which the Agents have otherwise been required to pay by reason of such indemnifying parties untrue or indemnified party alleged untrue statement or any other equitable consideration provided for omission or alleged omission. The Agents’ obligations in this Section 12(d)subsection (d) to contribute are several in proportion to their respective obligations and not joint.
(e) The provisions obligations of the Company under this Section 12 6 shall be in addition to any liability which any indemnifying party the Company may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Agents and each person, if any, who controls the Agents within the meaning of the 1933 Act and each Affiliate of the Agents; and the obligations of the Agents under this Section 6 shall be in addition to any indemnified party liability which the Agents may otherwise have and shall survive extend, upon the termination of this Agreement.
(f) The indemnification same terms and contribution required by this Section 12 shall be made by periodic payments conditions, to each officer and director of the amount thereof during Company (including any person who, with his or her consent, is named in the course Registration Statement as about to become a director of any actionthe Company) and to each person, suitif any, proceeding or investigation, as and when invoices are received or Losses are incurredwho controls the Company within the meaning of the 1933 Act.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to Amicus shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within (including the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partnersemployees, agents, employees representatives, officers and Affiliates directors of each Purchaser and its Affiliates) (each a “Purchaser Indemnitee”) from and against any and all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular prepared by Amicus in connection with the registration and/or offering of the Registrable Securities (as amended or supplemented if Amicus shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements the same are caused by or omissions arise out of or are based upon (i) contained in any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel specifically and expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after inclusion in such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementeddocument.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to shall indemnify and hold harmless the CompanyAmicus, each Personand its respective directors, if anyofficers, who participates as an underwriter in any such offering and sale of Registrable Securities employees and each Person, if any, Person who controls the Company or such underwriter Amicus (within the meaning of Section 15 of the Securities Act or Section 20 of and the Exchange Act) from and against any and all losses, claims, damages, liabilities and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation expenses (including reasonable costs of investigation) arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular prepared by Amicus in connection with the registration and/or offering of the Registrable Securities (as amended or supplemented if Amicus shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any if such untrue statement or omission is was made in reliance on upon and in conformity with any information with respect to concerning such Holder furnished in writing to the Company Amicus by such Holder or its counsel specifically and expressly for use therein; provided, however, that no Holder shall be required to indemnify in the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess preparation of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationdocument.
(c) Any Each Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give prompt written notice to the indemnifying party (the “Indemnifying Party”) after the receipt by such indemnified party the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreementthe Transaction Documents; provided, provided however, that the failure to give such notification so notify the Indemnifying Party shall not affect relieve the obligations Indemnifying Party of any liability that it may have to the indemnifying party pursuant to this Section 12 except Indemnified Party hereunder unless, and only to the extent that, such failure results in the indemnifying party shall have been actually and materially prejudiced as a result Indemnifying Party’s forfeiture of such failuresubstantive rights or defenses. In case If notice of commencement of any such action shall be brought against any indemnified party and it shall notify is given to the indemnifying party of the commencement thereofIndemnifying Party as above provided, the indemnifying party Indemnifying Party shall be entitled to participate therein in and, to the extent that it shall so electmay wish, jointly with any other indemnifying party Indemnifying Party similarly notified, to assume the defense thereofof such action at its own expense, with counsel chosen by it and reasonably satisfactory to such indemnified party, Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and after notice from the indemnifying party to such indemnified party of its election so to assume participate in the defense thereof, but the indemnifying party shall not be liable to such indemnified party for any legal fees and expenses of other such counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof (other than reasonable costs of investigation, ) shall be paid by the Indemnified Party unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters Indemnified Party in an Underwritten Offering its reasonable judgment or (iii) the named parties to any such action (including any impleaded parties) have been advised by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (y) there may be one or more than one counsel for legal defenses available to it which are different from or additional to those available to the CompanyIndemnifying Party. In either of such cases, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is the Indemnifying Party shall not entitled to, or elects not to, have the right to assume the defense of a claim such action on behalf of such Indemnified Party. No Indemnifying Party shall be liable for any settlement entered into without its written consent (other than in the case where the Indemnifying Party is unconditionally released from liability and its rights are not adversely effected), which consent shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyunreasonably withheld.
(d) If the indemnification from the indemnifying party provided for in this Section 12 7.5 from the Indemnifying Party pursuant to applicable law is unavailable to an indemnified party Indemnified Party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault faults of such indemnifying party Indemnifying Party and indemnified party Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledgeKnowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(cSections 7.5(a), (b) and (c), any legal or other fees and fees, charges or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7.5(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of an intentional or fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Person.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Securities Purchase Agreement (Amicus Therapeutics Inc)
Indemnification; Contribution. (a) The Company agrees to ViroPharma shall indemnify and hold harmless each Holder in (including the officers and directors of SaSy) from and against any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular (as amended or supplemented if ViroPharma shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements the same are caused by or omissions arise out of or are based upon (i) contained in any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to concerning such Holder furnished in writing to the Company ViroPharma by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after in such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedStatement.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to shall indemnify and hold harmless the CompanyViroPharma, each Person, if any, who participates as an any underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, retained by ViroPharma and their respective directors, trustees, officers, partners, agents, employees and Affiliateseach Person who controls ViroPharma or such underwriter (within the meaning of the Securities Act and the Exchange Act) from and against any and all losses, against all Losses incurred by such party pursuant to any actual or threatened actionclaims, suitdamages, proceeding or investigation liabilities and expenses (including reasonable costs of investigation) arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular (as amended or supplemented if ViroPharma shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any if such untrue statement or omission is was made in reliance on upon and in conformity with any information with respect to concerning such Holder furnished in writing to the Company ViroPharma by such Holder or its counsel specifically for use thereinin the preparation of such Registration Statement or prospectus; provided, however, that no the total amount to be indemnified by such -------- ------- Holder pursuant to this Section 8.6(b) shall be required limited to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, net proceeds received by such Holder upon the sale of Holders in the Registrable Securities giving rise offering to such indemnification obligationwhich the Registration Statement or prospectus relates.
(c) Any Each Person entitled to indemnification hereunder (the "Indemnified Party") agrees to give prompt written notice to the indemnifying party (the "Indemnifying Party") after the receipt by such indemnified party the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided, provided however, that the failure so to give such notification notify the Indemnifying Party shall -------- ------- not affect relieve the obligations Indemnifying Party of any liability that it may have to the indemnifying party pursuant to this Section 12 except Indemnified Party hereunder unless, and only to the extent that, such failure results in the indemnifying party shall have been actually and materially prejudiced as a result Indemnifying Party's forfeiture of such failuresubstantive rights or defenses. In case If notice of commencement of any such action shall be brought against any indemnified party and it shall notify is given to the indemnifying party of the commencement thereofIndemnifying Party as above provided, the indemnifying party Indemnifying Party shall be entitled to participate therein in and, to the extent that it shall so electmay wish, jointly with any other indemnifying party Indemnifying Party similarly notified, to assume the defense thereofof such action at its own expense, with counsel chosen by it and reasonably satisfactory to such indemnified party, Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and after notice from the indemnifying party to such indemnified party of its election so to assume participate in the defense thereof, but the indemnifying party shall not be liable to such indemnified party for any legal fees and expenses of other such counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof (other than reasonable costs of investigation, ) shall be paid by the Indemnified Party unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters Indemnified Party in an Underwritten Offering its reasonable judgment or (iii) the named parties to any such action (including any impleaded parties) have been advised by such counsel that either (x) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards of professional conduct or (y) there may be one or more than one counsel for legal defenses available to it which are different from or additional to those available to the CompanyIndemnifying Party. In either of such cases, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is the Indemnifying Party shall not entitled to, or elects not to, have the right to assume the defense of a claim such action on behalf of such Indemnified Party. No Indemnifying Party shall be liable for any settlement entered into without its written consent (other than in the case where the Indemnified Party is unconditionally released from liability and its rights are not adversely effected), which consent shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partyunreasonably withheld.
(d) If the indemnification from the indemnifying party provided for in this Section 12 8.6 from the Indemnifying Party pursuant to applicable law is unavailable to an indemnified party Indemnified Party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault faults of such indemnifying party Indemnifying Party and indemnified party Indemnified Party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(cSections 8.6(a), (b) and (c), any legal or other fees and fees, charges or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 8.6(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Person.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementNewbridge and its officers, each Persondirectors, if anyshareholders, who participates as an underwriter in any such offering and sale of Registrable Securitiesemployees, affiliates, agents and each Person, if any, person who controls such Holder or such underwriter Newbridge (and any of its affiliates) within the meaning of Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange Act of 1934, as amended (each an “Indemnified Person”), to the fullest extent lawful, against any and their respective directorsall claims, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities liabilities, and expenses (including reasonable attorneys’ all fees and expenses, as incurred, disbursements of counsel and any amounts paid other expenses reasonably incurred in any settlement effected connection with the Company’s consentinvestigation of, preparation for and defense of any pending or threatened claim, action, proceeding, inquiry, investigation or litigation, to which consent shall not be unreasonably withheld or delayedan Indemnified Person may become subject) (collectively, “LossesDamages”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions that arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant related to any actual or threatened actionproposed Corporate Advisory assignment or Newbridge’s engagement under this Agreement. However, suitthis indemnification shall not include any Damages that are found in a final judgment by a court of competent jurisdiction to have resulted from the bad faith, proceeding willful misconduct or investigation arising out gross negligence of Newbridge.
b) If the indemnity above is unavailable or based upon any untrue insufficient to hold harmless an Indemnified Person, then the Company shall contribute to amounts paid or alleged untrue statement payable by an Indemnified Person for Damages in such proportion as appropriately reflects the relative benefits received by the Company on the one hand and Newbridge on the other. If applicable law does not permit allocation solely on the basis of a material fact contained inbenefits, or any omission or alleged omission of a material fact required to then such contribution shall be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under made in such proportion as appropriately reflects both the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light relative benefits and relative fault of the circumstances then existing) not misleadingparties and other relevant equitable considerations. However, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically no event shall Newbridge’s aggregate contributions for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of Damages exceed the amount of the gross proceeds, after deducting any underwriting discounts and commissions, fees actually received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationNewbridge under this Agreement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party Promptly after the receipt by such indemnified party Newbridge of notice of any written notice of claim or the commencement of any action, suit, proceeding or investigation or threat thereof made in writing action for which an Indemnified Person may be entitled to indemnity, Newbridge shall promptly notify the Company of such indemnified party may claim indemnification or contribution pursuant the commencement of such against the Indemnified Person that would give rise to this Agreementindemnification. However, provided that any delay or failure to give such notification shall notify the Company will not affect relieve the obligations Company of the indemnifying party pursuant to this Section 12 its indemnity obligation except to the extent the indemnifying party shall have been actually and it is materially prejudiced as a result of by such delay or failure. In case any such action shall be brought against any indemnified party and it shall notify The Company may participate in the indemnifying party defense of the commencement thereof, claim and shall assume the indemnifying party defense of the claim and shall be entitled to participate therein and, to pay as incurred the extent that it shall so elect, jointly with fees and disbursements of counsel for the proceeding. In any other indemnifying party similarly notified, proceeding where the Company declines to assume the defense thereofor the Company’s counsel is deemed to have a conflict of interest, with the Indemnified Person shall have the right to retain its own counsel which shall be reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party Newbridge. The Company shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for pay the fees and expenses of (i) more than one such counsel for all Holders holding Registrable Securities who are indemnified partiesas incurred. However, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim Company shall not be obligated to pay responsible for the fees and expenses of more than one counsel (other than counsel of record) for all parties indemnified by such indemnifying party with respect to such Indemnified Persons.
d) The Company will not enter into any waiver, release or settlement for any threatened or pending claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of or settle any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the related litigation for which indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall may be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available sought under this Section 12, the indemnifying parties shall indemnify each indemnified Agreement (whether or not Indemnified Persons are a formal party to the full extent provided in Section 12(a) or 12(blitigation), as unless the case may bewaiver, without regard to the relative fault release or settlement includes an unconditional release of such indemnifying parties or indemnified party or each Indemnified Person from any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any and all liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments arising out of the amount thereof during the course of any threatened or pending claim, action, suitproceeding, proceeding investigation or investigation, as and when invoices are received or Losses are incurredlitigation.
Appears in 1 contract
Sources: Investment Banking Engagement Agreement (SQL Technologies Corp.)
Indemnification; Contribution. (a) The Company Developer agrees to indemnify and hold harmless each Holder in the Purchaser, any offering director, officer, employee or sale controlling person of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter the Purchaser within the meaning of Section 15 of the Securities 1933 Act or Section 20 of (collectively, the Exchange Act “Indemnified Parties”), against any and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and or expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred whatsoever caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue statements or alleged untrue misleading statement or allegedly misleading statement of a material fact contained in, in the Official Statement or caused by any omission or alleged omission from the Official Statement of a any material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary in order to make the statements therein (in the case of a Prospectusmade therein, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) under which they were made, not misleading, except in each case insofar as ; provided that such indemnification shall be limited solely to statements or omissions arise out of or are based upon in the Official Statement: (ia) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with prepared from information with respect to such Holder furnished in writing to by the Company by such Holder Developer or its counsel expressly for use thereinagents (including, (ii) the use of any Prospectuswithout limitation, Free Writing Prospectus its attorneys, accountants, or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
consultants); (b) containing information about the Developer or the Developer’s intended plans for the Project; (c) appearing in or pertaining to material appearing in the following captions: “SUMMARY OF THE PROJECT,” “PLAN OF FINANCE FOR THE PROJECT,” “THE PROJECT,” “NO LITIGATION – The Developer,” or “APPENDIX B – THE MUSEUM.” In connection case any action shall be brought against one or more of the Indemnified Parties based upon the Official Statement and in respect of which indemnity may be sought against the Developer, the Indemnified Parties shall promptly notify the Developer in writing and the Developer shall promptly assume the defense thereof, including the employment of counsel, the payment of all expenses and the right to negotiate and consent to settlement. Any one or more of the Indemnified Parties shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Indemnified Parties unless employment of such counsel has been specifically authorized by the Developer. The Developer shall not be liable for any settlement of any such action effected without its consent by any of the Indemnified Parties, but if settled with the consent of the Developer or if there be a final judgment for the plaintiff in any Registration Statement filed pursuant to this Agreementsuch action, each Holder holding Registrable Securities to be covered thereby agreesin which the Developer was provided timely notice, severally and not jointly against the Developer or any of the Indemnified Parties, with any other Holdersor without the consent of the Developer, the Developer agrees to indemnify and hold harmless the CompanyIndemnified Parties to the extent provided herein. If a claim for indemnification under this Section is determined to be unenforceable by a final judgment of a court of competent jurisdiction, each Personthen the Developer shall contribute to the aggregate losses, if anyclaims, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls damages or liabilities to which the Company Purchaser or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, its officers, partnersdirectors, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to controlling persons may be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses subject in such proportion amount as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, benefits received by such Holder upon the sale of Developer, on the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified partyone hand, and the parties’ Purchaser, on the other, and the relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result faults of the Losses referred to above shall be deemed to include, subject to Developer and the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceedingperson seeking contribution. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments delivery of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred2012 Bonds hereunder.
Appears in 1 contract
Sources: Purchase Contract
Indemnification; Contribution. (a) Indemnification by the Company. The Company agrees to ------------------------------- indemnify and hold harmless each Designated Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, Person who controls such Holder or such underwriter (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act Act) such Designated Holder from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedcosts of investigation) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action"Liabilities"), suit, proceeding or investigation ----------- arising out of or based upon any untrue untrue, or alleged untrue allegedly untrue, statement of a material fact contained inin any Registration Statement, prospectus or preliminary prospectus or notification or offering circular (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or arising out of or based upon any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of not misleading under the circumstances then existing) not misleadingsuch statements were made, except in each case insofar as such statements or omissions arise Liability arises out of or are is based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made contained in such Registration Statement, preliminary prospectus or final prospectus in reliance on and in conformity with upon information with respect to concerning such Designated Holder furnished in writing to the Company by such Designated Holder or its counsel expressly for use therein, (iiincluding, without limitation, the information furnished to the Company pursuant to Section 8(b) the use or failure of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation a Designated Holder to deliver a copy of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired registration statement or (iii) the use of prospectus or any Prospectus, Free Writing Prospectus amendments or “issuer information” supplements thereto after such time as the Company has advised furnished such Designated Holder with copies of the Holders that same. The Company shall also provide customary indemnities to any underwriters of the filing of an amendment or supplement thereto is requiredRegistrable Securities, except such Prospectustheir officers, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, severally directors and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities employees and each Person, if any, Person who controls the Company or such underwriter underwriters (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the same extent that any such untrue statement or omission is made in reliance on and in conformity with information as provided above with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess indemnification of the amount Designated Holders of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationSecurities.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Registration Rights Agreement (Outboard Marine Corp)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementShares, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable SecuritiesShares, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) In connection with any Registration Statement filed pursuant to this Agreementhereto, each Holder holding of Registrable Securities Shares to be covered thereby agreesshall, severally and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities Shares and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliatesaffiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b11(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to Shares of such indemnification obligationHolder under such Registration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 11 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding of Registrable Securities Shares who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders Shares who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the written opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (Ai) more than one counsel for all Holders holding of Registrable Securities Shares who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities Shares who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (Bii) more than one counsel for the underwriters in an Underwritten Offering or (Ciii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 1211. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 11 is unavailable to an indemnified party hereunder in respect of to any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to such contribution obligationShares of the Holder under the applicable Registration Statement. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c11(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d11(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d11(d). If indemnification is available under this Section 1211, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a11(a) or 12(b11(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d11(d).
(e) The provisions of this Section 12 11 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to If any Registrable Securities ----------------------------- are included in a registration statement under this Agreement:
7.1 To the extent permitted by applicable law, the Trust shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementSelling Holder, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Selling Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 Act, and each officer, director, trustee, partner and employee of the Exchange Act such Selling Holder and their respective directorssuch controlling Person, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses (joint or several), including reasonable attorneys’ ' fees and expensesdisbursements and reasonable expenses of investigation, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising investigation, or to which any of the foregoing Persons may become subject under the Securities Act, the Exchange Act or other federal or state laws, insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any of the following statements, omissions or violations (collectively, a "Violation"):
(i) Any untrue statement or alleged untrue statement of a material fact contained inin such registration statement, including any preliminary prospectus or final prospectus contained therein, or any amendments or supplements thereto; or
(ii) The omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Acttherein, or necessary to make the statements therein (not misleading; provided, however, that the indemnification required by this Section -------- ------- ------- 7.1 shall not apply to amounts paid in settlement of any such loss, claim, --- damage, liability or expense if such settlement is effected without the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light consent of the circumstances then existing) Trust (which consent shall not misleadingbe unreasonably withheld), except nor shall the Trust be liable in each any such case insofar as for any such statements loss, claim, damage, liability or omissions arise expense to the extent that it arises out of or are is based upon (i) a Violation which occurs in reliance upon and in conformity with information related to the indemnified party furnished to the Trust by the indemnified party in writing expressly for use in connection with such registration; and provided, further, -------- ------- that the indemnity agreement contained in this Section 7 shall not apply to the --------- extent that any such loss is based on or arises out of an untrue statement or alleged untrue statement of a material fact, or an omission or alleged omission to state a material fact, contained in or omitted from any preliminary prospectus if the final prospectus shall correct such untrue statement or alleged untrue statement statement, or such omission or alleged omission made in reliance on omission, and in conformity with information with respect a copy of the final prospectus has not been sent or given to such Holder furnished in writing person at or prior to the Company by confirmation of sale to such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after person if an underwriter was under an obligation to deliver such time as the obligation of the Company final prospectus and failed to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementeddo so.
(b) In connection with any Registration Statement filed pursuant to this Agreement7.2 To the extent permitted by applicable law, each Selling Holder holding Registrable Securities to be covered thereby agrees, severally and not jointly with any other Holders, to shall indemnify and hold harmless the CompanyTrust, and each Personof the officers, if anyemployees and Trustees of the Trust who shall have signed the registration statement, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter Trust within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, any other Selling Holder, any controlling Person of any such other Selling Holder and their respective directorseach officer, trusteesdirector, officerstrustee, partners, agents, employees partner and Affiliatesemployee of such other Selling Holder and such controlling Person, against any and all Losses losses, claims, damages, liabilities and expenses (joint and several), including reasonable attorneys' fees and disbursements and reasonable expenses of investigation, incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained ininvestigation, or to which any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) the foregoing Persons may otherwise become subject under the Securities Act, the Exchange Act or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus other federal or “issuer information,” in the light of the circumstances then existing) not misleadingstate laws, but only insofar as such losses, claims, damages, liabilities and expenses arise out of or are based upon any Violation, in each case to the extent that any such untrue statement or omission is made Violation occurs in reliance on upon and in conformity with information with respect related to the indemnified party seeking indemnification furnished by such Selling Holder furnished in writing to the Company by such Holder or its counsel specifically expressly for use thereinin connection with such registration; provided, however, that (x) the indemnification required by -------- ------- this Section 7.2 shall not apply to amounts paid in settlement of any such loss, ----------- claim, damage, liability or expense if such settlement is effected without the consent of the relevant Selling Holder (which consent shall not be unreasonably withheld) and (y) in no Holder event shall be required to indemnify the Company amount of any indemnity under this Section 7.2 exceed the proceeds (net of any underwriting discounts or any other ----------- commissions) from the applicable offering received by such Selling Holder.
7.3 Promptly after receipt by an indemnified party under this Section 12(b) with respect to any amount in excess 7 of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written --------- notice of the commencement of any action, suit, proceeding or proceeding, investigation or threat thereof made in writing for which such indemnified party may make a claim indemnification or contribution pursuant under this Section 7, such indemnified party shall deliver to this Agreement, provided that failure to give such notification shall not affect the obligations of indemnifying --------- party a written notice thereof and the indemnifying party pursuant shall have the right to this Section 12 except participate in, and, to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electdesires, jointly with any other indemnifying party similarly notifiednoticed, to assume the defense thereofthereof with counsel mutually satisfactory to the parties; provided, however, -------- ------- that an indemnified party shall have the right to retain its own counsel, with the fees and disbursements and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel reasonably satisfactory retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time following the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7 to the extent of such prejudice but shall not relieve the indemnifying --------- party of any liability that it may have to any indemnified party otherwise than pursuant to this Section 7. Any fees and expenses incurred by the indemnified --------- party (including any fees and expenses incurred in connection with investigating or preparing to defend such action or proceeding) shall be paid to the indemnified party, and after as incurred, within thirty (30) days of written notice from thereof to the indemnifying party (regardless of whether it is ultimately determined that an indemnified party is not entitled to indemnification hereunder). Any such indemnified party shall have the right to employ separate counsel in any such action, claim or proceeding and to participate in the defense thereof, but the fees and expenses of its election so such counsel shall be the expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees and expenses or (ii) the indemnifying party shall have failed to promptly assume the defense thereofof such action, claim or proceeding or (iii) the named parties to any such action, claim or proceeding (including any impleaded parties) include both such indemnified party and the indemnifying party, and such indemnified party shall have been advised by counsel in writing that there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party and that the assertion of such defenses would create a conflict of interest such that counsel employed by the indemnifying party could not faithfully represent the indemnified party (in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not be liable have the right to assume the defense of such indemnified party for any legal expenses action, claim or proceeding on behalf of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, it being understood, however, that the indemnifying party shall not, in connection with any one such action, claim or proceeding or separate but substantially similar or related actions, claims or proceedings in the defense thereof other same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than reasonable costs one separate firm of investigationattorneys (together with appropriate local counsel) at any time for all such indemnified parties, unless in the reasonable judgment of any such indemnified party, based on the opinion of counsel, party a conflict of interest is likely to may exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claimaction, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering claim or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claimproceeding, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Companyor counsels), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) 7.4 If the indemnification required by this Section 7 from the --------- indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losseslosses, then the claims, damages, liabilities or expenses referred to in this Section 7: ---------
(i) The indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party parties in connection with the actions which resulted in such Losseslosses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party parties shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, Violation has been made committed by, or relates to information supplied by, such indemnifying party or indemnified partyparties, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such actionViolation. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c)7.1 and ----------- Section 7.2, any legal or other fees and or expenses reasonably incurred by such indemnified ----------- party in connection with any investigation or proceeding.
(ii) The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7.4 were determined by pro rata allocation ----------- or by any other method of allocation which does not take into account the equitable considerations referred to in Section 7.4(i). No Person guilty of -------------- fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Registration Rights Agreement (Starwood Financial Trust)
Indemnification; Contribution. (a) The Company agrees In connection with any registration of Registrable Securities or Underwritten Offering pursuant to indemnify Section 2.01, Section 2.02 or Section 2.03, Boron will indemnify, defend and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementShareholder, each Personits Affiliates, if anydirectors, who participates as an underwriter in any such offering officers, shareholders and sale of Registrable Securities, employees and each Person, if any, Person who controls such Holder or such underwriter Shareholders within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, the “LossesIndemnified Persons”) incurred from and against any and all Losses caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inor incorporated by reference in any part of any Registration Statement or any Prospectus, including any amendment or supplement thereto, used in connection with the Registrable Securities, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading; provided, except in each case insofar as however, that Boron will not be required to indemnify any Indemnified Person for any such statements or omissions arise Loss arising out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing sales pursuant to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement or Prospectus based upon information in the Registration Statement or Prospectus that was represented by Silicon or Silicon Holdings as true and correct in the Merger Agreement, and with respect to which Boron would not have been reasonably expected to discover the failure of which such Prospectus forms a part has expired or (iii) information to be true and correct prior to the use date of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedsales.
(b) In connection with any Registration Statement filed or Prospectus, the Shareholders who sell Registrable Securities pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, such Registration Statement or Prospectus will severally and but not jointly with any other Holdersindemnify, to indemnify defend and hold harmless the CompanyBoron, each Personits directors, if anyits officers, who participates as an underwriter in any such offering and sale of Registrable Securities its employees and each Person, if any, who controls the Company or such underwriter Boron (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from Boron to the Shareholders, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant but only with respect to any actual or threatened action, suit, proceeding or investigation information arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder Shareholder or on such Shareholder’s behalf (in each case, in its counsel specifically capacity as a Shareholder), in either case expressly for use therein; provided, however, that no Holder shall be required to indemnify the Company in any Registration Statement or any other indemnified party under this Section 12(b) with respect to Prospectus, including any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationamendment or supplement thereto.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person in respect of which indemnity may be sought pursuant to Section 2.11(a) or Section 2.11(b), such action shall be brought against any indemnified party and it shall Person (the “Indemnified Party”) will promptly notify the indemnifying party of Person against whom such indemnity may be sought (the commencement thereof, “Indemnifying Party”) in writing and the indemnifying party Indemnifying Party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notifiedwish, to assume the defense thereof, thereof with counsel reasonably satisfactory to the Indemnified Party and will pay the fees and disbursements of such indemnified party, and after notice from the indemnifying party counsel related to such indemnified party proceeding; provided, however, that the failure or delay to give such notice shall not relieve the Indemnifying Party of its election so obligations pursuant to assume this Agreement except to the defense thereof, the indemnifying party extent that it shall not be liable to determined by a court of competent jurisdiction that such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred Indemnifying Party has been prejudiced by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of failure or delay. In any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, action or proceeding, the Indemnified Party shall have the right, but not the obligation, to participate in which event the indemnifying party shall not be liable for any such defense and to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such Indemnified Party unless (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of Indemnifying Party and the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory Indemnified Party have mutually agreed to the Company)retention of such counsel, (ii) more than one counsel for the underwriters in an Underwritten Offering Indemnifying Party fails to assume the defense of the claim, action or proceeding within fifteen (15) Business Days following receipt of notice from the Indemnified Party or (iii) more than one the Indemnified Party and the Indemnifying Party are both actual or potential defendants in, or targets of, any such action and the Indemnified Party has been advised by counsel for that representation of both parties by the Companysame counsel would be inappropriate due to actual or potential conflicting interests between them. It is understood that the Indemnifying Party will not, in each case in connection with any one claim, action or separate but similar proceeding or related actions. An indemnifying party who is not entitled toclaims, actions or elects not toproceedings in the same jurisdiction, assume be liable for the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one counsel (1) separate firm of attorneys (in addition to any local counsel) at any time for all parties indemnified by such indemnifying party with respect to Indemnified Parties and that all such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses will be reimbursed as they are incurred. In the case of the retention of any such additional counselseparate firm for the Indemnified Parties, provided that such firm will be designated in writing by the indemnifying party shall Indemnified Parties. The Indemnifying Party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final judgment for the fees plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and expenses against any Loss by reason of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified partiessuch settlement or judgment. No Indemnifying Party will, selected by without the Holders holding a majority prior written consent of the Registrable Securities who are indemnified parties Indemnified Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder, unless such settlement includes (which selection shall be reasonably satisfactory to the Company), (Bi) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to release of such indemnified party of a release Indemnified Party from all liability in respect to connection with such actionproceeding, suit, proceeding (ii) no finding or investigation to admission of any violation of Law or any violation of the extent such liability is covered rights of any Person by the indemnity obligations set forth Indemnified Party or any of its Affiliates can be made as the result of such action and (iii) the sole relief (if any) provided is monetary damages that are reimbursed in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without full by the consent of each indemnifying partyIndemnifying Party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 Section 2.11 from the Indemnifying Party is unavailable to an indemnified party Indemnified Party hereunder or is insufficient in respect of any LossesLosses referred to in this Section 2.11, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall will contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which that resulted in such Losses, as well as any other relevant equitable considerations; provided, howeveror (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of Boron, on the one hand, and such Shareholder, on the other, in connection with the statements or omissions that no Holder shall be required to contribute resulted in such Losses, as well as any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationother relevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall Indemnified Party will be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made taken by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of the Losses referred to above shall will be deemed to include, subject to the limitations set forth in Section 12(cSection 2.11(c), any reasonable legal or other out of pocket fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation .
(within the meaning of Section 11(fe) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(dSection 2.11(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration equitable considerations referred to in this Section 12(dSection 2.11(d). If No Person guilty of “fraudulent misrepresentation” (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. In no event shall any Shareholder be obligated to provide indemnification is available under this Section 12, or contribution in excess of the indemnifying parties shall indemnify each indemnified party net aggregate proceeds received from the sale of Registrable Securities pursuant to the full extent provided in Section 12(a) applicable Registration Statement or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Prospectus.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Merger Agreement (Banner Corp)
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless harmless, to the fullest extent permitted by law, each Holder in any offering or sale of Registrable Securities pursuant to this AgreementSecurities, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, and each Person, if any, who controls such Holder or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees ' fees, disbursements and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s 's consent, which consent shall not be unreasonably withheld or delayed) (collectively, “"Losses”") incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon upon: (i) any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except in each case insofar as such statements or omissions arise out of or are based upon (iA) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel expressly for use therein, (iiB) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iiiC) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented; or (ii) any violation by the Company of any other federal or state securities laws or regulations applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration. Notwithstanding the foregoing provisions of this Section 12(a), the Company shall not be liable to any such Holder or underwriter or to any other indemnified party under the indemnity agreement in this Section 12(a) for any Losses that arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any Prospectus if either (i) (A) such Holder or underwriter failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder or underwriter to the Person asserting the claim from which such Losses arise and (B) the Prospectus would have corrected such untrue statement or alleged untrue statement or such omission or alleged omission, or (ii) (x) such untrue statement or alleged untrue statement or omission or alleged omission is corrected in an amendment or supplement to the Prospectus and (y) having previously been furnished by or on behalf of the Company with copies of the Prospectus as so amended or supplemented as required hereunder, such Holder or underwriter thereafter fails to deliver such Prospectus, as so amended or supplemented, with or prior to the delivery of written confirmation of the sale of Registrable Securities by such Holder or underwriter to the Person asserting the claim from which such Losses arise. Such rights to indemnity and reimbursement of expenses shall survive the transfer of the Registrable Securities by such indemnified party.
(b) In connection with any Registration Statement filed pursuant to this Agreementhereto, each Holder holding of Registrable Securities to be covered thereby agreesshall, severally and not jointly with any other Holders, to indemnify and hold harmless harmless, to the fullest extent permitted by law, the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities and each Person, if any, who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliatesaffiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any the Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed preliminary Prospectus or required any amendment or supplement to be filed pursuant to Rule 433(d) under any of the Securities Act, foregoing or necessary to make the statements therein (in case of a Prospectus or preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, total net proceeds received by such Holder upon the sale from sales of the Registrable Securities giving rise to of such indemnification obligationHolder under such Registration Statement.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall not be liable for the fees and expenses of (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the indemnifying party shall not be liable for the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 is unavailable to an indemnified party hereunder in respect of any Losses, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions which resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other matters, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the Losses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c), any legal or other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d).
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.this
Appears in 1 contract
Indemnification; Contribution. (a) The Company agrees to shall indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementHolder, each Person, if any, who participates as an underwriter in any such offering its respective officers and sale of Registrable Securitiesdirectors, and each Person, if any, who controls such Holder or such underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, any agents, employees and Affiliates representatives or advisers thereof against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ ' fees and expenses, as incurred, expenses and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, “Losses”reasonable costs of investigation) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained inin any Registration Statement, any Prospectus or preliminary Prospectus, or any amendment or supplement to any of the foregoing, (ii) any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus or a preliminary Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, or (iii) any violation or alleged violation by the Company of any United States federal, state or common law rule or regulation applicable to the Company and relating to action required of or inaction by the Company in connection with any such registration except in each case insofar as such statements or omissions the same arise out of or are based upon (i) upon, any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with written information with respect to such Holder the Holders furnished in writing to the Company by such Holder the Holders or its their counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplemented.
(b) . In connection with any Registration Statement filed pursuant to this Agreementan Underwritten Offering, each Holder holding Registrable Securities to be covered thereby agreesthe Company shall indemnify the underwriters thereof, severally their officers, directors and not jointly with any other Holders, to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities agents and each Person, if any, Person who controls the Company or such underwriter underwriters (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the same extent that any such untrue statement or omission is made in reliance on and in conformity with information as provided above with respect to such Holder furnished in writing to the Company by such Holder or its counsel specifically for use therein; provided, however, that no Holder shall be required to indemnify the Company or any other indemnified party under this Section 12(b) with respect to any amount in excess indemnification of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationHolders.
(cb) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, Section 13 (provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 13 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure). In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 13 for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation. Notwithstanding the foregoing, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, in which event if (i) the indemnifying party shall not be liable for the fees and expenses of (i) more than one have employed counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for the underwriters in an Underwritten Offering or (iii) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. An indemnifying such indemnified party who is not entitled to, or elects not to, assume to take charge of the defense of such action within a claim shall reasonable time after notice of commencement of such action (so long as such failure to employ counsel is not be obligated to pay the fees and expenses result of more than one counsel for all parties indemnified an unreasonable determination by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect that counsel selected pursuant to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that immediately preceding sentence is unsatisfactory) or if the indemnifying party shall not be liable for have demonstrated to the fees and expenses of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority reasonable satisfaction of the Registrable Securities who are indemnified party its ability to finance such defense, or (ii) the indemnified party shall have reasonably concluded or been advised by counsel that there may be legal defenses available to other indemnified parties (to such action which selection could result in a conflict of interest for such counsel or prejudice the prosecution of the defenses available to such indemnified party, then such indemnified party shall be reasonably satisfactory have the right to employ separate counsel of its choosing, at the Company), (B) more than one counsel for expense of the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsindemnifying party. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, suit, proceeding or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry enter into any settlement without the consent (which consent, in the case of each indemnifying an action, suit, claim or proceeding exclusively seeking monetary relief, shall not be unreasonably withheld) of the applicable indemnified party.
(dc) If the indemnification from the indemnifying party provided for in this Section 12 13 is unavailable to an indemnified party hereunder in respect of any Losseslosses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified party in connection with the actions or omissions which resulted in such Losseslosses, claims, damages, liabilities and expenses, as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied (in writing, in the case of the Holders) by, such indemnifying party or indemnified party, and the parties’ ' relative intent, knowledge, access to information and opportunity to correct or prevent such actionaction or omission. The amount paid or payable by a party as a result of the Losses losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 12(c)13(b) hereof, any legal or and other fees and expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 13(c) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 13(c). Any underwriter's obligations in this Section 13(c) to contribute shall be several in proportion to the number of Registrable Securities underwritten by them and not joint. Notwithstanding the provisions of this Section 13(c), no underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration referred to in this Section 12(d). If indemnification is available under this Section 1213, the indemnifying parties shall indemnify each indemnified party to the full fullest extent provided in Section 12(a13(a) or 12(b), as the case may be, hereof without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d13(c).
(ed) The provisions of this Section 12 13 shall be in addition to any liability which any indemnifying party may have to any indemnified other party and shall survive the any termination of this Agreement.
(f) . The indemnification and contribution required provided by this Section 12 13 shall be survive the Transfer of such Registrable Securities by the Holders and shall remain in full force and effect irrespective of any investigation made by periodic payments or on behalf of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurredan indemnified party.
Appears in 1 contract
Sources: Credit Agreement (Cadiz Inc)
Indemnification; Contribution. (a) The Company agrees to indemnify and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this Agreement, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities, the Affiliates, directors, officers, employees, members, managers and agents of each such Holder and each Person, if any, Person who controls any such Holder or such underwriter within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act Act, to the fullest extent permitted by applicable law, from and their respective directors, trustees, officers, partners, agents, employees against any and Affiliates against all losses, claims, damages, liabilities and expenses to which they or any of them may become subject insofar as such losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid or actions in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayedrespect thereof) (collectively, “Losses”) incurred by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained inin a Registration Statement as originally filed or in any amendment thereof, or the Disclosure Package, or any preliminary, final or summary Prospectus or Free Writing Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, except and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in each connection with investigating or defending any such loss, claim, damage, liability or action (whether or not the indemnified party is a party to any proceeding); provided, however, that the Company will not be liable in any case insofar as to the extent that any such statements loss, claim, damage, liability or omissions arise expense arises (i) out of or are is based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance on upon and in conformity with written information with respect to such Holder furnished in writing to the Company by or on behalf of any such Holder specifically for inclusion therein including, without limitation, any notice and questionnaire, or its counsel expressly for use therein, (ii) the use out of sales of Registrable Securities made during a Suspension Period after notice is given pursuant to Section 2(e)(ii) hereof. This indemnity agreement will be in addition to any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of liability which the Company to keep effective the Registration Statement of which such Prospectus forms a part has expired or (iii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedmay otherwise have.
(b) In connection with any Registration Statement filed pursuant to this Agreement, each Each Holder holding Registrable Securities to be covered thereby agrees, severally (and not jointly with any other Holders, jointly) agrees to indemnify and hold harmless the Company, each Person, if any, who participates as an underwriter in any such offering and sale of Registrable Securities Company and each Personof its Affiliates, if anydirectors, employees, members, managers and agents and each Person who controls the Company or such underwriter within the meaning of Section 15 of either the Securities Act or Section 20 of the Exchange Act, to the fullest extent permitted by applicable law, from and their respective directorsagainst any and all losses, trusteesclaims, officersdamages or liabilities to which they or any of them may become subject insofar as such losses, partnersclaims, agents, employees and Affiliates, against all Losses incurred by such party pursuant to any actual damages or threatened action, suit, proceeding or investigation arising liabilities arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained inin a Registration Statement as originally filed or in any amendment thereof, or in the Disclosure Package or any Holder Free Writing Prospectus, preliminary, final or summary Prospectus included in any such Registration Statement, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, to the extent, but only to the extent extent, that any such untrue statement or alleged untrue statement or omission or alleged omission is made contained in reliance on and in conformity with any written information with respect relating to such Holder furnished in writing to the Company by or on behalf of such Holder or its counsel specifically for use inclusion therein; provided, however, that no the total amount to be indemnified by such Holder pursuant to this Section 8(b) shall be required limited to indemnify the Company net proceeds (after deducting underwriters’ discounts and commissions) received by such Holder in the offering to which such Registration Statement or Prospectus relates. This indemnity agreement will be in addition to any other liability which any such Holder may otherwise have.
(c) Promptly after receipt by an indemnified party under this Section 12(b) with respect to any amount in excess 8 of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may will, if a claim indemnification or contribution pursuant in respect thereof is to this Agreement, provided that failure to give such notification shall not affect the obligations of be made against the indemnifying party pursuant to under this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any such action shall be brought against any indemnified party and it shall 8, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent such action and such failure results in material prejudice to the indemnifying party and forfeiture by the indemnifying party of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to participate therein and, to the extent that it shall so electwish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, and be counsel to the indemnifying party), and, except as provided in the next sentence, after notice from the indemnifying party to such indemnified party of its election to so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case expenses subsequently incurred by such indemnified party, party in connection with the defense thereof other than reasonable costs of investigation, unless . Notwithstanding the indemnifying party’s rights in the prior sentence, the indemnified party shall have the right to employ its own counsel (and one local counsel), and the indemnifying party shall bear the reasonable judgment fees, costs and expenses of any such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party, based on the opinion of counsel, party would present such counsel with a conflict of interest is likely to exist between interest; (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and such the indemnified party and any shall have reasonably concluded that there may be legal defenses available to it and/or other of such indemnified parties with respect which are different from or additional to such claim, in which event those available to the indemnifying party; (iii) the indemnifying party shall not be liable for the fees and expenses of (i) more than one have employed counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory to the Company), (ii) more than one counsel for indemnified party to represent the underwriters in an Underwritten Offering indemnified party within a reasonable time after notice of the institution of such action; or (iiiiv) more than one the indemnifying party shall authorize the indemnified party to employ separate counsel for at the Companyexpense of the indemnifying party. No indemnifying party shall, in each case in connection with any one action or separate but substantially similar or related actions. An indemnifying party who is not entitled toactions in the same jurisdiction arising out of the same general circumstances or allegations, or elects not to, assume the defense of a claim shall not be obligated to pay liable for the fees and expenses of more than one counsel separate firm of attorneys (in addition to any local counsel) for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel, provided that the parties. An indemnifying party shall not be liable for under this Section 8 to any indemnified party regarding any settlement or compromise or consent to the fees and expenses entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (A) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by whether or not the Holders holding a majority of the Registrable Securities who are indemnified parties (are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party, which selection consent shall not be reasonably satisfactory to the Company), (B) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actionsunreasonably withheld. No indemnifying party, in the defense of any such action, suit, proceeding claim or investigationlitigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry enter into any settlement which or compromise that does not include as an unconditional term thereof the giving by the claimant or plaintiff therein, to such indemnified party party, of a full and final release from all liability in respect to such action, suit, proceeding claim or investigation to the extent such liability is covered by the indemnity obligations set forth in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without the consent of each indemnifying partylitigation.
(d) If In the indemnification from event that the indemnifying party indemnity provided for in this Section 12 8(a) or Section 8(b) above is unavailable to or insufficient to hold harmless an indemnified party hereunder in respect of for any Lossesreason, then the each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall party agrees to contribute to the amount paid aggregate losses, claims, damages and liabilities (including, without limitation, legal or payable by other expenses reasonably incurred in connection with investigating or defending same) (collectively, “Losses”) to which such indemnified indemnifying party as a result of such Losses may be subject in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party on the one hand and by the indemnified party on the other from the offering of the New Common Stock. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the indemnifying party on the one hand and the indemnified party on the other in connection with the actions statements or omissions which resulted in such Losseslosses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations; provided, however, that no Holder shall be required to contribute any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligation. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among other mattersthings, whether any action in question, including any the untrue statement or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact, has been made by, or fact relates to information supplied by, such by the indemnifying party on the one hand or the indemnified party, party on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such actionstatement or omission. The parties agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by pro rata allocation (even if the Holders of Registrable Securities or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 8(d). The amount paid or payable by a an indemnified party as a result of the Losses losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Section 8(d) shall be deemed to include, subject to the limitations set forth in Section 12(c), include any legal or other fees and expenses reasonably incurred by such indemnified party in connection with investigating or defending any investigation such action or proceedingclaim. No Notwithstanding the provisions of this Section 8(d), no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to For purposes of this Section 12(d) were determined by pro rata allocation 8, each Person who controls any Holder of Registrable Securities, agent or by underwriter within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of any other method such Holder, agent or underwriter shall have the same rights to contribution as such Holder, agent or underwriter, and each Person who controls the Company within the meaning of allocation that does not take into account either the consideration referred Securities Act or the Exchange Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this Section 12(d). If indemnification is available under this Section 12, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 12(a) or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d8(d).
(e) The provisions of this Section 12 shall be 8 will remain in addition full force and effect, regardless of any investigation made by or on behalf of any Holder of Registrable Securities or the Company or any of the officers, directors or controlling Persons referred to any liability which any indemnifying party may have to any indemnified party in this Section 8 hereof, and shall will survive the termination transfer of this AgreementRegistrable Securities.
(f) The To the extent any indemnification and by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution required with respect to any amounts for which it would otherwise be liable under Section 8 to the fullest extent permitted by this law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 12 11(f) of the 1▇▇▇ ▇▇▇) in connection with such sale shall be made entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by periodic payments any seller of Registrable Securities shall be limited in amount to the net amount thereof during of proceeds received by such seller from the course sale of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurredsuch Registrable Securities pursuant to such Shelf Registration.
Appears in 1 contract
Sources: Registration Rights Agreement (Charter Communications Inc /Mo/)
Indemnification; Contribution. (a) The Company agrees In connection with any registration of Registrable Securities or Underwritten Offering pursuant to indemnify Section 2.01, Section 2.02 or Section 2.03, Boron will indemnify, defend and hold harmless each Holder in any offering or sale of Registrable Securities pursuant to this AgreementShareholder, each Personits Affiliates, if anydirectors, who participates as an underwriter in any such offering officers, shareholders and sale of Registrable Securities, employees and each Person, if any, Person who controls such Holder or such underwriter Shareholders within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act and their respective directors, trustees, officers, partners, agents, employees and Affiliates against all losses, claims, damages, liabilities and expenses (including reasonable attorneys’ fees and expenses, as incurred, and any amounts paid in any settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) (collectively, the “LossesIndemnified Persons”) incurred from and against any and all Losses caused by such party pursuant to any actual or threatened action, suit, proceeding or investigation arising out of or based upon any untrue or alleged untrue statement of a material fact contained inor incorporated by reference in any part of any Registration Statement or any Prospectus, including any amendment or supplement thereto, used in connection with the Registrable Securities, or any omission or alleged omission of to state therein a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, therein or necessary to make the statements therein (in the case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existingunder which they were made) not misleading; provided, except in each case insofar as however, that Boron will not be required to indemnify any Indemnified Person for any such statements or omissions arise Loss arising out of or are based upon (i) any such untrue statement or alleged untrue statement or omission or alleged omission made in reliance on and in conformity with information with respect to such Holder furnished in writing sales pursuant to the Company by such Holder or its counsel expressly for use therein, (ii) the use of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the obligation of the Company to keep effective the Registration Statement or Prospectus based upon information in the Registration Statement or Prospectus that was represented by Silicon or Silicon Holdings as true and correct in the Merger Agreement, and with respect to which ▇▇▇▇▇ would not have been reasonably expected to discover the failure of which such Prospectus forms a part has expired or (iii) information to be true and correct prior to the use date of any Prospectus, Free Writing Prospectus or “issuer information” after such time as the Company has advised the Holders that the filing of an amendment or supplement thereto is required, except such Prospectus, Free Writing Prospectus or “issuer information” as so amended or supplementedsales.
(b) In connection with any Registration Statement filed or Prospectus, the Shareholders who sell Registrable Securities pursuant to this Agreement, each Holder holding Registrable Securities to be covered thereby agrees, such Registration Statement or Prospectus will severally and but not jointly with any other Holdersindemnify, to indemnify defend and hold harmless the CompanyBoron, each Personits directors, if anyits officers, who participates as an underwriter in any such offering and sale of Registrable Securities its employees and each Person, if any, who controls the Company or such underwriter Boron (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) to the same extent as the foregoing indemnity from Boron to the Shareholders, and their respective directors, trustees, officers, partners, agents, employees and Affiliates, against all Losses incurred by such party pursuant but only with respect to any actual or threatened action, suit, proceeding or investigation information arising out of or based upon any untrue or alleged untrue statement of a material fact contained in, or any omission or alleged omission of a material fact required to be stated in, any Registration Statement, Prospectus, Free Writing Prospectus or “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, or necessary to make the statements therein (in case of a Prospectus, a Free Writing Prospectus or “issuer information,” in the light of the circumstances then existing) not misleading, but only to the extent that any such untrue statement or omission is made in reliance on and in conformity with information with respect to such Holder furnished in writing to the Company by such Holder Shareholder or on such Shareholder’s behalf (in each case, in its counsel specifically capacity as a Shareholder), in either case expressly for use therein; provided, however, that no Holder shall be required to indemnify the Company in any Registration Statement or any other indemnified party under this Section 12(b) with respect to Prospectus, including any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligationamendment or supplement thereto.
(c) Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such indemnified party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such indemnified party may claim indemnification or contribution pursuant to this Agreement, provided that failure to give such notification shall not affect the obligations of the indemnifying party pursuant to this Section 12 except to the extent the indemnifying party shall have been actually and materially prejudiced as a result of such failure. In case any claim, action or proceeding (including any governmental investigation) is instituted involving any Person in respect of which indemnity may be sought pursuant to Section 2.11(a) or Section 2.11(b), such action shall be brought against any indemnified party and it shall Person (the “Indemnified Party”) will promptly notify the indemnifying party of Person against whom such indemnity may be sought (the commencement thereof, “Indemnifying Party”) in writing and the indemnifying party Indemnifying Party shall be entitled to participate therein and, to the extent that it shall so elect, jointly with any other indemnifying party similarly notifiedwish, to assume the defense thereof, thereof with counsel reasonably satisfactory to the Indemnified Party and will pay the fees and disbursements of such indemnified party, and after notice from the indemnifying party counsel related to such indemnified party proceeding; provided, however, that the failure or delay to give such notice shall not relieve the Indemnifying Party of its election so obligations pursuant to assume this Agreement except to the defense thereof, the indemnifying party extent that it shall not be liable to determined by a court of competent jurisdiction that such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred Indemnifying Party has been prejudiced by such indemnified party, in connection with the defense thereof other than reasonable costs of investigation, unless in the reasonable judgment of failure or delay. In any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between the indemnifying party and such indemnified party and any other of such indemnified parties with respect to such claim, action or proceeding, the Indemnified Party shall have the right, but not the obligation, to participate in which event the indemnifying party shall not be liable for any such defense and to retain its own counsel, but the fees and expenses of such counsel will be at the expense of such Indemnified Party unless (i) more than one counsel for all Holders holding Registrable Securities who are indemnified parties, selected by the Holders holding a majority of Indemnifying Party and the Registrable Securities held by all Holders who are indemnified parties (which selection shall be reasonably satisfactory Indemnified Party have mutually agreed to the Company)retention of such counsel, (ii) more than one counsel for the underwriters in an Underwritten Offering Indemnifying Party fails to assume the defense of the claim, action or proceeding within fifteen (15) Business Days following receipt of notice from the Indemnified Party or (iii) more than one the Indemnified Party and the Indemnifying Party are both actual or potential defendants in, or targets of, any such action and the Indemnified Party has been advised by counsel for that representation of both parties by the Companysame counsel would be inappropriate due to actual or potential conflicting interests between them. It is understood that the Indemnifying Party will not, in each case in connection with any one claim, action or separate but similar proceeding or related actions. An indemnifying party who is not entitled toclaims, actions or elects not toproceedings in the same jurisdiction, assume be liable for the defense of a claim shall not be obligated to pay the reasonable fees and expenses of more than one counsel (1) separate firm of attorneys (in addition to any local counsel) at any time for all parties indemnified by such indemnifying party with respect to Indemnified Parties and that all such claim, unless in the reasonable judgment of any indemnified party, based on the opinion of counsel, a conflict of interest is likely to exist between an indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses will be reimbursed as they are incurred. In the case of the retention of any such additional counselseparate firm for the Indemnified Parties, provided that such firm will be designated in writing by the indemnifying party shall Indemnified Parties. The Indemnifying Party will not be liable for any settlement of any claim, action or proceeding effected without its written consent (which consent shall not be unreasonably withheld, conditioned or delayed), but if such claim, action or proceeding is settled with such consent or if there has been a final judgment for the fees plaintiff, the Indemnifying Party agrees to indemnify the Indemnified Party from and expenses against any Loss by reason of (A) more than one counsel for all Holders holding Registrable Securities who are indemnified partiessuch settlement or judgment. No Indemnifying Party will, selected by without the Holders holding a majority prior written consent of the Registrable Securities who are indemnified parties Indemnified Party, settle, compromise or offer to settle or compromise any pending or threatened proceeding in respect of which any Indemnified Party is seeking indemnity hereunder, unless such settlement includes (which selection shall be reasonably satisfactory to the Company), (Bi) more than one counsel for the underwriters in an Underwritten Offering or (C) more than one counsel for the Company, in each case in connection with any one action or separate but similar or related actions. No indemnifying party, in defense of any such action, suit, proceeding or investigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or entry into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to release of such indemnified party of a release Indemnified Party from all liability in respect to connection with such actionproceeding, suit, proceeding (ii) no finding or investigation to admission of any violation of Law or any violation of the extent such liability is covered rights of any Person by the indemnity obligations set forth Indemnified Party or any of its Affiliates can be made as the result of such action and (iii) the sole relief (if any) provided is monetary damages that are reimbursed in this Section 12. No indemnified party shall consent to entry of any judgment or entry into any settlement without full by the consent of each indemnifying partyIndemnifying Party.
(d) If the indemnification from the indemnifying party provided for in this Section 12 2.11 from the Indemnifying Party is unavailable to an indemnified party Indemnified Party hereunder or is insufficient in respect of any LossesLosses referred to in this Section 2.11, then the indemnifying partyIndemnifying Party, in lieu of indemnifying such indemnified partyIndemnified Party, shall will contribute to the amount paid or payable by such indemnified party Indemnified Party as a result of such Losses (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party Indemnifying Party and indemnified party Indemnified Party in connection with the actions which that resulted in such Losses, as well as any other relevant equitable considerations; provided, howeveror (ii) if the allocation provided by clause (i) is not permitted by applicable Law, in such proportion as is appropriate to reflect not only the relative fault referred to in clause (i) but also the relative benefit of Boron, on the one hand, and such Shareholder, on the other, in connection with the statements or omissions that no Holder shall be required to contribute resulted in such Losses, as well as any amount in excess of the amount of the gross proceeds, after deducting any underwriting discounts and commissions, received by such Holder upon the sale of the Registrable Securities giving rise to such contribution obligationother relevant equitable considerations. The relative fault of such indemnifying party Indemnifying Party and indemnified party shall Indemnified Party will be determined by reference to, among other mattersthings, whether any action in question, including any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made taken by, or relates to information supplied by, such indemnifying party Indemnifying Party or indemnified partyIndemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of the Losses referred to above shall will be deemed to include, subject to the limitations set forth in Section 12(c2.11(c), any reasonable legal or other out of pocket fees and or expenses reasonably incurred by such indemnified party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation .
(within the meaning of Section 11(fe) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The parties agree that it would not be just and equitable if contribution pursuant to this Section 12(d2.11(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the consideration equitable considerations referred to in this Section 12(d2.11(d). If No Person guilty of “fraudulent misrepresentation” (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. In no event shall any Shareholder be obligated to provide indemnification is available under this Section 12, or contribution in excess of the indemnifying parties shall indemnify each indemnified party net aggregate proceeds received from the sale of Registrable Securities pursuant to the full extent provided in Section 12(a) applicable Registration Statement or 12(b), as the case may be, without regard to the relative fault of such indemnifying parties or indemnified party or any other equitable consideration provided for in this Section 12(d)Prospectus.
(e) The provisions of this Section 12 shall be in addition to any liability which any indemnifying party may have to any indemnified party and shall survive the termination of this Agreement.
(f) The indemnification and contribution required by this Section 12 shall be made by periodic payments of the amount thereof during the course of any action, suit, proceeding or investigation, as and when invoices are received or Losses are incurred.
Appears in 1 contract
Sources: Merger Agreement (Banner Corp)